'Shared Wallet' Wagering Legislation Introduced in NY

Legislation has been introduced in New York State to permit new mobile sports betting license holders to enter into agreements with in-state racetracks to permit sports bettors to directly wager on Thoroughbred horse racing.

The legislation by Sen. Joseph Addabbo, a Queens Democrat who chairs the Senate's racing, gaming, and wagering committee, would give bettors a more "seamless" way to wager on Thoroughbred races, he said in an interview.

The state's new mobile sports betting program, which could be in place by the Super Bowl in February, does not permit direct wagering on horse racing. The state is, however, permitting a "shared wallet" system in which bettors can tap into money they have on deposit with one of the mobile sports betting operators to wager on horse racing via the NYRA Bets program.

The new legislation would add horse racing to the other forms of pro and some college sports contests that New York mobile sports bettors could directly wager on. However, the new sports betting program only permits them to take fixed odds bets, not wagers based on a pari-mutuel wagering system.

The Addabbo bill would also permit mobile sports betting operators to enter into agreements with "affiliates"—defined as off-track betting parlors, sports stadiums and arenas, other racetracks, and the Aqueduct Video Lottery Terminal casino—to locate self-service mobile sports betting kiosks for placing wagers on the various pro and amateur contests. The sports betting operators would own the kiosks.

Any of the agreements would have to be approved by the New York State Gaming Commission, and mobile sports operators could not offer direct wagering on horse races without deals from the New York Racing Association and Finger Lakes.

Addabbo said the legislation mirrors the original plans he offered several years ago before a final version was approved this spring as part of the 2021 state budget. The Gaming Commission recently selected the operators for the new program.

"We're looking to maximize our potential,'' Addabbo said of the reason for his new bill. He said "there should be a marriage of the horse racing industry… and mobile sports betting" as one way to encourage current mobile sports bettors—who either travel across the state border to wager or bet illegally via bookies or off-shore accounts—to try New York's upcoming mobile program.

Addabbo said the current bill is limited to Thoroughbred horse race betting, but that he would consider an expansion to harness race wagering down the road. He said he has discussed the bill with Assemblyman Gary Pretlow, a Westchester County Democrat and his committee counterpart in the Assembly; Addabbo said Pretlow told him last Friday—the day the Senate bill was introduced—that he is reviewing the idea.

The bill would permit the direct wagering on races at tracks run by NYRA and at Finger Lakes Racetrack. 

NYRA has welcomed the "shared wallet" concept for the new mobile sports betting program but said the new Addabbo legislation will offer more options for bettors who might want to do fixed-odds wagering on horse races. 

"Allowing horse racing content and wagering to coexist within the mobile sports betting marketplace would grow the sport in New York, deepen the industry's economic impact, and attract new fans. It would expand consumer choice by placing premium horse racing content on the same mobile shelf as other professional sports, which would generate $1 billion or more in additional gaming revenue for New York State,'' said NYRA spokesman Patrick McKenna.

McKenna said the Addabbo bill "presents an enormous opportunity for horse racing to share in the benefits of mobile sports betting."