Jan. 1 marked the start of another crazy year in the legal US sports betting market. Recapping 2021, 10 different states joined the marketplace with the launch of legal sports betting in some form.
However, one of the biggest stories of the year was that New York online sports betting might be legalized.Jump to
New York Legal Sports Betting
Sports betting has been legal in the Empire State for a few years. However, it has been limited to retail sportsbooks in a small number of land-based casinos located upstate. The move towards expanding into online sports betting picked up some major steam in 2021.
Backed heavily by then-Governor Andrew Cuomo, the proper legislation was signed into law. The regulatory process ran into some bumps along the road to end any hopes of a 2021 launch. However, the process continued to move forward.
Mid-to-Late January Launch
While an official start date has yet to be announced, legal mobile sports betting in New York should go live during the first month of the year.
State Senator Joseph Addabbo has been one of the biggest proponents of legal mobile sports betting since the start. He remains optimistic that the actual launch will take place during the second or third week of January.
Still working through the actual logistics, licensed New York sportsbook operators will likely determine that actual start. The New York Gaming Commission does have plans to announce a firm date to go live. However, this hinges on the computer servers’ ability to process wagers.
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New York Mobile Sports Betting Operators
A total of nine sportsbook companies were given the approval to operate a mobile platform in the state. This list contains all the major players such as FanDuel, DraftKings, and BetMGM as the three biggest.
New York Operators Pay the Price of Entry
The lucky nine operators on this list will pay a steep price to enter the New York market. The tax rate on mobile sports betting revenue has been set at 51%.
To put that rate into the proper perspective, mobile sportsbooks in New Jersey pay a 13.5% tax rate on their monthly revenue.
None the less, New York is projected to become one of the biggest legal online sports betting markets in the country. A good chunk of that monthly handle will come from New Jersey, as the current leader in the US.
The Garden State crossed the $1billion mark in monthly sports betting volume in September, October, and November in 2021. You can probably add December to the list once those numbers are released.
It has been estimated that almost 20% of New Jersey’s monthly sports betting handle can be attributed to New York bettors.