For us Europeans, it's kinda weird how the US treats their gamblers. It's as if their laws are founded on religious principles where sex and fun are sinful. However, things are moving forwards, albeit very slowly. So, those gamblers looking to see when there will be legal online gambling in New York are still in for a considerable wait.
It's been over two years that nearly anyone in New York who's 21 or older can legally place bets on sports using their mobile phones. And to one's surprise, a lot of people are doing just that. Mobile sports betting became available in January 2022. Since then, tons of gamblers have been rushing to download the latest betting apps. Companies like DraftKings and FanDuel are bombarding the airwaves with ads. Major leagues like the NFL and NBA are embracing sports betting. New Yorkers have wagered almost $40 billion on sports over the last couple of years. That's more than the $22.9 billion bet in New Jersey and the $16.1 billion in Nevada over the same period. It's also a big reason why New York is already being hailed as the "sports betting capital of the world." However, it’s not done and dusted with all types of betting. Many still ask when will online gambling be legal in New York.
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But the rise of sports betting might not be the biggest new form of gambling in the state. Many industry players, along with some New York lawmakers, are trying to legalize another type of mobile betting. This is interactive gaming, or "iGaming." iGaming basically means online casinos with games like slots, blackjack, roulette, and craps. There's a hope that iGaming could be even more profitable for gambling companies than betting on sports. But it brings many potential problems. You have to remember that up until recently, it was tough to legally gamble anywhere in New York. For years, your only legal betting options were state lotteries and horse race betting. Or gambling on Native American tribal lands. In 2013, New York finally permitted four Las Vegas-style casinos upstate. By 2018, each of them was offering a full range of casino table games.
The Birth Of US Sports Betting
Then, in May 2018, the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act of 1992. This effectively banned sports betting nationwide, except for in Nevada. This decision opened the floodgates for states to legalize sports wagering. As you can imagine, many quickly jumped on board. New Jersey was one of the first, and within a year, a dozen states had passed laws to legalize sports betting. Within two years, more than 20 states followed suit.Picture Source: FlickrNew York was a bit slower to act. This was because then-Governor Andrew Cuomo was initially hesitant about allowing mobile betting. But seeing neighboring states legalizing it, Cuomo eventually gave in. He included legalized sports betting in the 2021 state budget. Keep in mind that Cuomo only got his way with strict regulations and high taxes. But this didn't stop many sports betting companies from applying to operate in New York with more certainty of when will online gambling be legal in New York.
Generating More Cash - When Will Online Gambling Be Legal In New York?
One big reason why there's a push for iGaming to pass in New York this year is because it's highly profitable. And, it's a reliable source of income for both gambling companies and the state. That's right, it's being driven forward by the cha-ching of cash registers. Sports betting only offers a relatively slim profit margin, averaging around 8% of total wagers nationwide in 2020. Yet iGaming at the best online casino sites in the US like King Billy Casino offers a steadier and much more lucrative income. But let's not forget that sports betting can also be unpredictable. For example, if a lot of people bet on one team to win and very few on the other. Then the sportsbook might lose money because the losing bets wouldn't cover the winning ones. But iGaming has a broader customer base beyond just sports enthusiasts. As a point of fact, the games it offers typically have higher "hold percentages' - that's the amount a casino wins on a particular game. There was a study by the University of Nevada, Las Vegas, spanning over 20 years of table games. It found hold percentages ranging from 12.69% to 18.90% across games like blackjack, craps, roulette, and baccarat. Some industry experts estimate that an iGaming customer could be worth seven times more than a sports betting customer. And for any politician, that's a lot of moolah.
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State Senator Joseph Addabbo heads the Senate Racing, Gaming, and Wagering Committee. To no one's surprise, he supports the expansion of gambling. He suggested that the revenue generated from iGaming in New York could surpass that from sports betting. In January, Addabbo introduced a bill to legalize iGaming. The proposed legislation would issue iGaming licenses to all nine sports betting operators. Also seven brick-and-mortar casinos, nine racinos, and a few other entities. These licenses would permit them to offer online slots, blackjack, and other casino games. Their tax rate would be set at 30.5%. Additionally, the bill would legalize an online version of the New York Lottery. When asked why so few states have legalized iGaming, Addabbo said it was due to concerns about addiction. "I think it's the fear of the widespread addiction issue," he explained. Nonetheless, as to when will online gambling be legal in New York, he remains optimistic that legalizing iGaming in New York is inevitable. "With iGaming, it's not a question of if, but when," he stated. Because cash trumps welfare concerns!
The Data - When Will Online Gambling Be Legal In New York?
The main argument made by Addabbo and other iGaming supporters revolves around its potential to boost state revenue. Addabbo stressed, "Every year we delay iGaming in New York, we're potentially losing around $4 billion in revenue." There have been bullshit claims of a significant illegal iGaming market in New York. Yet there's been no evidence to back this up. Picture Source: FlickrSimilar arguments were made during the push for sports betting legalization. However, the estimates used to gauge the size of the illegal market are not reliable. They steer towards various business interests. According to online gambling news in the US, the projected $3 billion in new annual revenue for the state is based on data from states like Pennsylvania and New Jersey. Yet, it's important to note that this is still a poor projection.
Show Me The Money
In truth, New York has faced disappointments with their optimistic revenue projections in the past. But, if you're asking when will online gambling be legal in New York, the reality is far less rosy for state income. For instance, New York authorized four Las Vegas-style casinos upstate. The initial optimistic revenue projections were significantly higher than what was actually achieved. But let's imagine revenue projections for iGaming from online casinos like King Billy Casino were met. There's still concern about addiction and problem gambling. Brandy Richards of the New York Council on Problem Gambling has emphasized this overlooked issue. Currently, the state only allocates $6 million from sports betting to address problem gambling. Jim Maney, the director of the New York Council on Problem Gambling, deems it insufficient. Maney wants a more substantial allocation. He's aiming for closer to $21 million for sports betting addiction support. With further increases if iGaming is legalised. However, Addabbo's bill proposes only $11 million to address problem gambling.
The Shadow Of Addiction - When Will Online Gambling Be Legal In New York?
Regarding addiction concerns with iGaming, Addabbo argues that legislation would help. This would be by allowing better monitoring and intervention. Well, he would say that, wouldn't he? He stated, "Once you regulate in New York, you're in a better position to help a New Yorker." While there's no guarantee of iGaming will be legalized this year, the state is moving closer. As to when will online gambling be legal in New York, an industry lobbyist mentioned, "It took us three years to pass sports betting. And we're going to keep pushing for iGaming. Hopefully, it will happen this year, but if not, it's something we'll continue working on for the future."
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