Sports Betting Approved for 2022 in New York

New York State Governor, Andrew Cuomo, approved legislation allowing for legal online sports gambling starting in 2022 for New York residents

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It was announced this week that Governor Andrew Cuomo approved legislation that will allow for online sports betting in the State of New York — starting just in time for the Super Bowl in 2022.

Cuomo signed the bill as part of the 2022 New York State fiscal plan, and New York State Senator Joseph Abbaddo Jr. believes that the first online bets to be placed will be on February 13, 2022, which is the same day as the Super Bowl. New York will become the fifteenth state to allow for some form of online gambling to take place.

Following the 2018 decision made by the Supreme Court to repeal the nationwide ban on sports betting, New York quickly saw casinos pop up across the state throughout 2019. These casinos were safe havens for sports bettors that had been forced to place bets illegally.

With this new legislation, all New York residents will have the ability to place legitimate bets through whichever platform providers win bids with New York State.

New York officials will begin accepting bids from platform providers such as FanDuel by no later than July 1 of this year. New York will be allowed to accept bids from two platform providers to operate in the state. Providers that win bids will pay a one-time fee of $25 million for the right to facilitate sports betting in the state and must also be physically housed in a New York casino.

There will be a recurring $5 million fee associated with operating their mobile betting servers at each casino. A maximum tax rate of 13% has been set for the providers, which would yield a massive boost to the state's tax revenue.

In 2020, online sports betting generated over $200 million in tax revenue for states that allow it. It's estimated that over $20 billion was spent on betting in the U.S. last year, and that's just accounting for legal bets placed.

Governor Cuomo leans toward the New York State Lottery running the online sports betting operation, as it's done in many other states where online gambling is legal; however, many lawmakers opposed this structure and favor allowing private entities to be making bids. Opponents to the state running the online sportsbook argue that it would allow for the state to essentially have a monopoly over the industry and discourage open competition from entering the arena.

Not everyone is pleased with this news, however, as New Jersey is set to take a big hit once online gambling is legal in New York. Currently, many New Yorkers place bets in their neighboring state, as it's been a legal activity there since 2012. Since that time, New Jersey has grown to become the largest sports betting market in America, due in part to the overflow of New Yorkers placing bets just by crossing the Hudson River.

As more professional sports embrace gambling and betting, it's to be expected that more states will join New York by legalizing online sports books. As states are finalizing budgets for 2022, many will be faced with how to make up for unexpected losses as a result of the ongoing Covid-19 pandemic. Legalization of cannabis and sports betting have long been controversial topics of debate, but as unemployment and social services have drained a lot of states' resources over the past 15 month they both may be states' saving graces.

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