After tremendous losses of revenue, New York is now turning to online sports gambling as a means to generate much needed money through its highly debated Bill, S17D.
Across the state, New York only allows sports betting in physical locations called sportsbooks. Currently, there are seven sportsbooks in the state but no online platforms. Before the pandemic, New Yorkers who wanted to gamble online would have gone to New Jersey or Pennsylvania, where online sports betting is legal.
Betters placed their wagers using mobile applications made available by these two states. From a competitive market model vantage point then, New York loses revenue due to its legal restrictions and inaccessibility to these apps. It also misses out on licensing and advertising opportunities, which would bring in much needed money.
In the past, Gov. Andrew Cuomo has rejected legalizing online sports gambling under the justification that it violates New York’s constitution. Cuomo reasoned that online sports gambling does not fit the description of what is permitted according to the states’ rules. Despite this, legalization is still in consideration. Bill S17D would legalize online sports betting, allowing betters to use virtual currency, to make wagers.
Talks regarding S12D, however, have stalled due to the pandemic.
New York Sen. Joseph Addabbo Jr., a proponent for passing the bill, believes that it is necessary now more than ever to help refuel the economy. “This is the way that New York is losing revenue, number one. [We’re] losing educational funding