January 8, 2021 Sports Betting, Legal, Online

New York sports betting could be worth $20bn; but monopoly would "forever limit" market

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New York could become the largest legal sports betting market in the US, according to projections by PlayNY.

The New York gaming and analysis firm estimates the state could generate $20bn a year in wagers, if governor Andrew Cuomo follows through with his proposal to make online sports betting legal.

The state could, however, fall below that estimate if mobile sports betting is run as a monopoly through the New York State Gaming Commission.

“There is no question New York would almost immediately become the crown jewel of the legal US sports betting market,” said PlayNY lead analyst Dustin Gouker.

“The devil is always in the details, but opening a market that could be worth more than $20bn a year in bets could be a game-changing moment for the entire industry.

"On the other hand, a state monopoly, such as what Gov. Cuomo proposed, would be a mistake that could forever limit the ceiling for New York.”

PlayNY projects that the state has the potential to generate more than $1bn in gross gaming revenue annually from more than $20bn in handle which, if taxed identically to retail sportsbooks, would produce over $100m in annual tax revenue.

A state-run sportsbook allows the state to capture a larger share of gross gaming revenue. However, a monopoly could see struggling retail racetracks and retail casinos continue to suffer.

PlayNY analyst Eric Ramsey added: “Mobile sports betting will undoubtedly draw billions in bets in New York and is easily one of the most prized markets that have yet to legalize it.

“It will be a big market no matter what, but the Cuomo plan has a chance to significantly lower the potential revenue ceiling.”

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