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Legalized online sports betting is coming to New York, but operating in the state may come with a hefty price tag.
New York estimates that online sports betting could generate roughly $482 million annually in state tax revenue, as operators must offer to pay the state at least 50% of their revenues.
New York first legalized sports betting in 2013 but limited action to casinos. A federal ruling in 2019 expanded betting to retail sportsbooks, but now New Yorkers will be able to indulge online from mobile devices.
In April, a tentative agreement backed by former Gov. Andrew Cuomo was reached to allow online sports betting in New York, but through a model that is lottery-run and limits the number of sportsbooks.
- New York’s plan is inspired by the system in New Hampshire, which pocketed $13.3 million in revenue from online sports betting between July 2020 and June of this year.
- New Hampshire takes 51% of the gross gaming revenue from online sports betting in the state.
New York will award licenses based on a sportsbooks’ track record and plans.
FanDuel and DraftKings could be frontrunners to operate online sports betting in the state.
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