Mobile Sports Betting to Become Legal in New York

Mobile sports betting will become legal in New York State under a deal reached April 6 at the state Capitol.

Under the terms of the agreement set to be adopted as part of a new state budget, New York will permit online wagering to commence sometime before the end of the year on college and pro sports contests.

Wagering on horse racing will not be permitted under the plan. Also, a proposal to permit sports betting through on-site kiosks at tracks, stadiums, arenas, and some OTB parlors was not part of the final deal.

While the Legislature, led by mobile sports sponsors and racing and wagering committee chairs Sen. Joseph Addabbo and Assemblyman Gary Pretlow, pushed for a broader system to attract more gambling operators, the final agreement calls for a more narrowly defined plan proposed by Gov. Andrew Cuomo. The Democratic governor's plan also pushes more tax revenue to the state, and less to the industry, than the legislative plan.

Sports betting is permitted in New York now, but only through in-person wagering at four upstate commercial casinos, as well as at casinos operated by Native American tribes. The new deal will permit internet-based wagering throughout much of the state, though one tribe, the Oneida Indian Nation in Central New York, says the deal will breach its existing gambling exclusivity agreement with the state.

While final terms of the deal were written the evening of April 6, the mobile sports agreement is set to permit the state to select up to two operators—who can contract with up to four skins, or sports app partners—to run the mobile betting. The state will get approximately 50% of revenues.

Some gambling industry officials say the plan is too restrictive, will limit competition for companies and sports bettors, and will not dissuade many people from traveling from downstate to New Jersey to make a bet or through off-shore, illegal outlets.

Addabbo said Thoroughbred bettors in New York can continue to make horse racing wagers through the New York Racing Association's platform. He said the law, once enacted, could still change down the road to permit betting a broader mobile sports betting program that would include horse racing or to install sports kiosks at racetracks and other venues.