On March 25, New York Gov. Andrew Cuomo decided to leave mobil sports betting out of the New York state budget. At the time, lawmakers wanted Cuomo to put it in for the 2020 fiscal year. Cuomo didn’t budge as the state has a $6 billion deficit. This was also in the midst of the coronavirus outbreak in New York City. Cuomo had bigger issues to deal with at the time, and the uncertainty about the pandemic in March made sports betting get put on the back burner. Now, the state has COVID-19 under control, and sports leagues in the US are getting ready to start.
Coronavirus Impact on New York
New York Sen. Joseph Addabbo Jr. believes the coronavirus will cost the state $15 billion in revenue, and no built-in revenues. The state is already in a deficit, and the pandemic that hit New York the hardest could make it more difficult on the government.
There’s a strong chance the state could lose out on billions in revenue if they aren’t able to reopen for a while longer. Although New York’s numbers are far from their peak, they still had 1500 cases on May 20. New York City is far from reopening, which will make it difficult for the state to earn revenue from that region.
The city is cancelling all nonessential events through June. Now, there is a chance that all summertime events will be cancelled in 2020 due to Coronavirus. If this is the case, then the state will need to find a void in filling their growing deficit.
A large revenue loss will be from sports betting and gaming if they are unable to reopen anytime soon. The state has averaged $50 million in monthly revenue over the last year. In April, the state of New York will earn $0 in revenue from casinos and sportsbooks.
What No Mobile Gaming Means
Back in March when the New York government was finalizing the budget, Addabbo was trying to get mobile gaming on it. Ultimately, he fell short and mobile gaming was left off. However, there is still a chance for it to be amended into the budget, and now might be a good time for Gov. Cuomo to consider.
Pennsylvania has seen casinos close down due to the pandemic. However, the state is still bringing in millions of revenue because bettors are flocking to mobile gaming. The numbers aren’t what they are hoping, but revenue during this time is better than nothing.
New York’s budget deficit is in the billions, and mobile gaming could help reduce that. The state sees $50 million in revenue a month from gaming, and they need to do something to help bring money to the state. According to gambling.com New Jersey is seeing a 25 percent increase in New York bettors. A lot of this has to do with no mobile service to keepNew Yorkers betting in their home state.
In New Jersey, the February handle for sports betting was $494.8 million, and 88.2 percent of the handle was through mobile betting. Pennsylvania saw 90 percent of their $348.3 million handle come from mobile betting from January.
Cuomo and Mobile Gaming
Cuomo leaving mobile gaming off the 2020 fiscal budget might hurt the state in the long-term. The hardest hit state due to the pandemic will need to find ways to generate revenue for the upcoming year with many events being cancelled.
Mobile gaming has been a huge success in New Jersey and Pennsylvania for the month of April. At least online slots and table games can help generate some revenue for the state.
Also, sports leagues are slowly getting ready to start back up here in the US. Other casinos are starting to see May sports betting revenue higher than it was in April. This is thanks to the UFC, NASCAR, Golf, KBO, and Bundesliga all playing.
Cuomo needs a way to earn revenue, and Sen. Addabbo is trying to get mobile gaming voted in for the 2020 fiscal year. Seeing numbers from neighboring states, this should encourage Cuomo to get mobile gaming and betting running for the state in 2020.
New Jersey has already shown that they are seeing tons of New Yorkers flock to their state to place wagers. This is thanks to Cuomo’s management of the New York gaming system.. The pressure is on the Governor to help fix this crisis, and mobile betting and gaming can be one way to solve it.