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Gov. Andrew Cuomo of New York is ready to bring mobile sports betting to the Empire State. Cuomo’s longtime stance against online wagering has stood as perhaps the biggest roadblock in the way of a mobile sports betting launch in New York.
Cuomo’s about-face on mobile sports betting could open the doors for New York to become the biggest sports betting market in the US. That title currently belongs to neighboring New Jersey, which brought in more than $300 million in online sports betting revenue in 2020.
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Under Cuomo’s proposed sports betting regulations, however, the New York Lottery would function as the state’s lone online sports betting operator. This model, currently used in Washington DC, Oregon, Montana, and other markets, could significantly hamper the potential of New York’s mobile sports betting industry.
States using the lottery sports betting model experience a significant revenue gap when compared to states with casino-operated online sportsbooks. All of the top mobile sports betting markets in the US allow multiple operators, backed by license partnerships with established casino brands.
If Cuomo moves forward with the lottery model for online sports betting, the New York market would operate similarly to Washington DC, Montana, New Hampshire, and Oregon. Each of those states offers a single online sports betting platform, regulated by the state lottery.
Washington DC is home to the Gambet DC mobile sports betting app, as well as a single retail sportsbook operated by William Hill at Capital One Arena.
Despite the limitations of a land-based sportsbook, the William Hill venue produced $13.7 million in betting handle in November. Gambet DC, available from anywhere in Washington DC, took in just under $3.9 million in wagers for November.
Oregon’s online sports betting industry is powered by the Oregon Lottery’s Scoreboard app. Oregon produced just over $25 million in November handle, using the same one-operator system proposed by Cuomo for New York.
New Hampshire emerged as the most successful state using the lottery model in 2020. The New Hampshire Lottery licenses DraftKings Sportsbook as the state’s solo mobile sports betting operator.
New Hampshire took $46.5 million in handle for November, bolstered by the DraftKings brand. The New Hampshire model sees 51% of gross gaming revenue go to the New Hampshire Lottery.
All of the top six online sports betting states in the US operate with multiple brands competing for market share. All six (New Jersey, Pennsylvania, Nevada, Illinois, Indiana, Colorado) allow for land-based casinos to offer mobile sports betting.
Retail casinos can bring on license partners for their mobile sports betting offerings. This model sees brands like DraftKings, FanDuel, BetRivers, PointsBet, and BetMGM thriving under licensing agreements with established land-based casinos.
New Jersey tops the list as the biggest mobile sports betting market in the US. The Garden State pulled in $872 in online betting handle in November, with a portion of that figure certainly coming from New York bettors that make the quick trip to New Jersey to place bets.
Pennsylvania’s online sportsbooks generated $447.4 million in handle for November. Illinois’ latest figures, from October, saw the state’s surging sports betting industry take $409.5 million in mobile wagers.
The performance from states using the casino operator sports betting model dwarfs the states that allow a single lottery-operated app to own a monopoly in the state.
New Jersey topped the list of US states in overall betting handle in each of the first 11 months of 2020. When the final December figures come in, they’ll likely show a clean sweep across the entire year for New Jersey’s powerful sports wagering market.
Recent months show more than 90 percent of wagers coming from mobile in New Jersey. That same trend persists in Pennsylvania and Illinois as well.
All three of those states use the casino operator sports betting model, with online sportsbooks falling under the oversight of gaming regulation agencies in those states. This model invites names like DraftKings and FanDuel into the market, along with the marketing machines behind those brands.
Gov. Cuomo’s proposed lottery operator model could significantly limit the New York mobile sports betting market from reaching its full potential. The Empire State seems like a prime spot for online wagering to flourish if different sports betting brands are allowed to compete for market share.