New York Sports Betting

New York

New York Sports Betting Precedent

New York does have precedent in place that would allow for sports betting in the Empire State. In 2013, a voter referendum was overwhelmingly passed that allowed for the four casinos in the state to offer sports betting. At that point in time, the only other existing barrier for New York to offer sports betting was the Professional and Amateur Sports Protection Act of 1992 (PASPA) which was recently struck down by a Supreme Court ruling in May 2018 leaving the door wide-open for New York to move forward with offering sports betting.

Future Of Sports Betting In New York

New York legislators stalled in the pursuit to authorize sports betting after the PASPA ruling when it adjourned its 2018 session in June without introducing any further legislation, proposals, or laws. The New York State Gaming Commission has already been working on rules and licensing protocol based on the 2013 voter referendum. However, there is no current proposed timeline or concrete expectation of when the gaming commission will have everything in place to offer sports betting at the state’s four casinos. There are rumors and speculation that the gaming commission has not made large strides due to the state’s governor, Andrew Cuomo, preferring to wait until after his re-election campaign has been completed which could delay sports betting until after the new year and into 2019.

Future Of Online Sports Betting In New York

The 2013 referendum does not currently allow for online or mobile wagering, but some current pieces of proposed legislation would. The issue is that the referendum is the only law currently in place that would allow for the progression of any type of sports betting in the state. Just as unknown as the land-based sports betting is the future of online sports betting in New York. Online sports betting could be on an even longer projected timeline to become live with sports betting, as a whole, still in limbo in the state. The metaphorical clock does appear to be ticking with state’s like neighboring New Jersey well ahead of the curve when it comes to offering online sports betting.

Potential Issues In Offering Online Sports Betting

New York legislators may have to conduct a cost-reward examination to see if online sports betting is worth the potential monetary loss from the Oneida Indian Nation. How does the Oneida Indian Nation play into the online sports betting equation? Well, they currently have the exclusive rights to offer casino gambling in the 10-county region of upstate New York. So if someone places a wager from their home, business, sports bar, or anywhere else physically located in that area, then it could be argued that those wagers not made with an Oneida-affiliated casino would infringe on those exclusive rights.

But just how much does the Oneida Nation pay to the state for those exclusive rights? Over the last five years those exclusive rights have equated to more than $200 million to the state based on the 25% of revenues paid from their slot machines. Current estimations for sports gambling revenue in New York are forecasted at anywhere from $10-30 million a year. Even if the revenue from sports betting does reach the upper eschelon of that estimation, it would still fall short of the annual $40 million average from the Oneida Nation exclusive rights deal. However, this estimation is only based on in-person sports betting and does include the potential revenue from online wagers. Online wagering could easily increase the total revenue from sports betting to more than $500 million based on some projections. There are also some lofty projections could see New York generating anywhere from $170 million to $591 million in total fiscal impact that includes up to 12,000 jobs created. This could go a long way in the risk-reward analysis that takes into account more than just generated revenue.

Precedent For Indian Nation Disagreements With The State

There is precedent already in place if the Oneida Nation does believe the online sports betting infringes on their exclusive rights within the state. The Seneca Nation of Indians withheld more than $100 million worth of payments when they argued that there was an infringement on their gaming compact rights. This could become even more heightened and contentious because the Oneida Nation has already publicly declared their intention on also offering sports betting in their casinos if other casinos in the state also move forward with offering sports betting.

Where Will Sports Betting Be Offered In New York

Sports betting would be allowed in the state’s four privately run and full-scale casinos. You will also see Indian Nation casinos also offering sports betting. These privately-run casinos are:

  • Tioga Downs—located in Nichols
  • Del Lago Resort & Casino—located in Waterloo
  • Rivers Casino & Resort—located in Schenectady
  • Resorts World Catskills—located in Monticello

FAQs

What types of sporting events would I be able to wager on?
The expectation is that bettors would be able to wager on all sporting events. However, the 2013 referendum, which is the only legislation currently in place, does not allow for wagering on New York college sporting events. Proposed and future legislation could allow for this.

Will online sports betting be available in New York?
As of right now, it is too soon to tell. In the earliest stages there will most likely not be any online sports betting available. In-person betting will probably be the exclusive avenue from placing sports wagers in New York. However, this could quickly change if New York does start missing out on potential revenue from New Yorkers crossing state lines to place online wagers in Pennsylvania or New Jersey.

Who is allowed to place sports wagers online?
Following suit of other state sportsbooks, you must be 21 years old and must also by physically located within New York state lines in order to place bets.

When will I be able to place wagers on sports in New York?
As it currently stands, the earliest that New Yorkers and visitors will be able to place wagers will most likely be closer to late winter or early summer of 2019.

References

https://newyork.cbslocal.com/2018/07/17/new-york-sports-betting/
https://www.usatoday.com/story/news/nation/2013/11/06/ny-voters-ok-private-casinos/3450951/
https://www.syracuse.com/sports/index.ssf/2018/06/new_york_sports_betting_deadline_passes_with_no_new_law.html

https://www.newyorkupstate.com/casinos/2018/08/football_season_is_here_legal_sports_betting_in_new_york_is_not.html

  
Native Texan and graduate of Texas Tech University School of Law, and Harvard Business School. Quezada is currently an Associate Attorney with a law firm in Dallas, Texas, where he practices corporate immigration and represents some of the largest technology companies in Silicon Valley. Aside from participating in multiple fantasy football leagues, he is a regular DraftKings DFS player and also wagers on NFL, NCAA, NBA, and PGA Tour events. Beyond sports, Quezada also writes in the arenas of law, politics, and economics.