New York legalized sports betting in 2013. However, it would be about six years before the first sportsbooks would open up around the state. Sports betting wasn’t legalized in the U.S. until 2018 when the Supreme Court struck down the Professional and Amateur Sports Protection Act.
From there, the Empire State got to work on passing regulations on the newly launched industry. In the first year, 2019 set records for revenue in the state, but 2020 has been a different story.
Through the first three months, New York has brought in over $1.8 million. A majority of the revenue came in January as February finished with a loss for the month. Casinos shut down in March as the COVID-19 pandemic swept across the state.
|Monthly Revenue||Del Lago Resort & Casino||Resorts World Catskills||Rivers Casino & Resort||Tioga Downs Casino|
Roller Coaster Revenue
January was a great start to the year for New York sports betting. The $1.9 million in revenue the state brought in that month had a lot to do with the NFL Playoffs. The NFL is the most popular sport for players to bet, so it only makes sense for revenue numbers to jump during football season.
New York wasn’t so lucky in February in terms of generating sports betting revenue. The state took in a $179k loss for the month. Three of the four casinos were negative in February. Only Del Lago Resort posted positive revenue for February at $98,247.
One argument experts could have on negative revenue is because February is a cold month for New York. The football season is over, and there aren’t many sports bet on either during this time. However, the state brought in $54.6 million from the four casinos in February. Also, the NBA, NHL, and College Basketball are still going on during this time, giving sports bettors plenty of options for sports to bet.
March was supposed to be a bounceback month for the state. The March Madness tournament brings out many sports bettors during one of the best post-season tournaments of the year. However, the Coronavirus outbreak had shut down casinos by mid-March, and the NCAA postponed canceled the March Madness Tournament altogether. New York only brought in $99,514 sports betting revenue for the month. Casinos haven’t brought in revenue as they are still shut down due to COVID-19.
The four sportsbooks have been shut down since mid-March, and there is no sign that they will open up anytime soon. New York is working is set to enter phase four on reopening the central part of the state. However, this will not include casinos leaving sportsbooks in the dust.
Right now, there is no time frame on how long phase four will last in the state. The previous phases only had two weeks before New York could move on. However, phase four will be a more drawn-out process. The delayed process could leave New York sportsbooks closed as leagues around the U.S. begin to start up next month.
Since April, sports betting has generated $0 for the Empire State. Also, with no mobile betting available, New York is missing a revenue stream they desperately need. State officials are projecting the budget deficit to be in the billions due to COVID-19. The rules following coronavirus guidelines will continue to leave New Yorkers sidelined from betting in the state.
The state generated $1.8 million in sports betting revenue during the first three months of the year. Since then, they have produced $0. Gov. Andrew Cuomo might need to address a mobile betting system to help bring in state revenue during the pandemic. New Yorkers will continue to flock to New Jersey to get action in leaving New York in worse shape.
However, COVID-19 might be the thing to turn sports betting around across the state. That is if they legalize mobile betting on short notice. Sen. Joseph Addabbo has been proactive about the state setting up some sort of mobile betting service. Addabbo believes that with taxes and licensing fees, the state could see up to $200 million in yearly revenue from mobile betting. Online betting would keep bettors in the state instead of driving over state lines to New Jersey to place bets.
The New Jersey Impact
New Jersey is turning into one of the biggest sports betting hubs on the East Coast as bettors begin to call it the Las Vegas of the East. They are also neighbors to the state that has the largest city in the country, New York City.
In 2020, New Jersey has brought in $88.6 million in revenue, even with the coronavirus impacting sports since mid-March. Also, $81 million of the $88.6 million has come from mobile wagering. With legalized mobile betting, New Jersey can capitalize on players making bets from their homes. Also, New Yorkers from the city can drive across to New Jersey to place mobile bets since New York does not allow mobile betting.
The amount of money New Jersey brings in from sports betting is staggering. Studies show New Yorkers bet an estimated $837 million in New Jersey throughout 2019. That is roughly 18.6 percent of the total amount bet that comes from New Yorkers.
It’s no wonder Sen. Addabbo believes New York could generate $200 million in revenue. The state of New Jersey generated $243.3 million in the final six months of 2019. Also, $3.78 billion was bet through a mobile device that year in New Jersey, roughly 84 percent of total wages.
Given the numbers the Empire State’s neighbor makes in a year, there is a great chance New York could put up similar numbers, or even pass New Jersey in sports betting revenue. However, that doesn’t start until mobile betting is legal. The closest New York sportsbook to New York city is 90-miles away. That makes it easy for people who live in New York to head to New Jersey instead. Not to mention, New York City has a population of over nine million.
Overall, New York will continue to take a back seat in sports betting revenue until the state legalizes online gaming. Mobile betting needs to become a thing, along with putting sportsbooks in and around the city. Revenue numbers for New York aren’t bad, but they aren’t great either. For now, New York will have to find different ways to generate revenue.