Future Of Mobile New York Sports Betting Remains Unclear

• Sen. Joseph Addabbo wants to legalize online betting for NY’s four upstate commercial casinos.
• The New York Gaming Association does not support Addabbo’s bill, SB 17.
• The New York legislative session ends in less than a month.

NEW YORK – Sports betting is already legal in New York and will be launching at the state’s four upstate casino venues. However, the 2019 legislative session has been dedicated to expanding the pastime to include online options.

At this early juncture, that tack is proving difficult.

Sen. Joseph Addabbo, Jr. (D), has been adjusting SB 17 to include mobile online betting. But expanding the existing sports betting law requires a delicate balance.

The current version of Addabbo’s bill allows for mobile betting, but only at books run by the four upstate casinos and select tribal casinos. That’s not enough for the New York Gaming Association (NYGA).

The NYGA represents casino and racino operators throughout the state. These include the Aqueduct Racetrack in Queens and the Finger Lakes Gaming & Racetrack in Farmington, among others. As these members are not allowed to offer sports wagering under Addabbo’s proposal, the NYGA no longer supports it.

In a statement to Addabbo, NYGA president Michael Kane minced no words.

“Without the ability of the bulk of our members to participate in mobile wagering, NYGA will be unable to support the expansion of sports betting and mobile wagering as presently proposed.”

The NYGA’s stance on sports wagering accessibility is hardly new. In 2018, before the federal sports betting ban was even overturned, the group was already all-in on the potential for the new industry.

Of course, the NYGA’s stance might not matter, as there are other pressing issues in play.

Extenuating Circumstances

Ultimately, online New York sports betting is a foregone conclusion. That said, there are two issues keeping it on the backburner for the immediate future.

The first is that the upstate casinos where sports wagering is currently legal and pending launch are struggling.

Approved by voter referendum, 2013’s Upstate New York Gaming Economic Development Act granted the construction of four upstate casinos.

These include the Resorts World Catskills (Monticello), the Tioga Downs Casino Resort (Nichols), the Rivers Casino & Resort (Schenectady), and the del Lago Resort & Casino (Waterloo).

None of the casinos is currently profitable. Notably, Resorts World Catskills lost $58 million in its first year, while del Lago has had its Moody’s credit rating downgraded two years in a row.

With billions invested in these properties, Addabbo sees sports wagering as a way to increase foot traffic to right the ship. Adding online betting would certainly increase revenues. Still, there is a strong motive for government to limit its operation to the aforementioned properties.

Giving these casinos exclusivity to offer in-person and online betting long enough to establish a new customer base. This base would then help the casinos weather future competition when online betting expands to other operators.

The other obstacle Addabbo is facing with SB 17 is New York Gov. Andrew Cuomo (D). The Cuomo administration has repeatedly claimed that online sports betting constitutes “expanding gambling”. Constitutionally, claims Cuomo, this would require another voter referendum.

Voters already approved sports betting at the four upstate casino venues. Limiting online betting to operation by these venues could obviate the need for another referendum.

How Addabbo will proceed remains unclear. The senator has less than a month to get everyone on the same page, as the current New York legislative session ends on June 19.

News tags: mobile | New York | NY SB 17 | sports betting