Start Spreading The Blues: NY Sports Betting Bill A Total Mess
New York mobile sports betting language, which is included in the household bill, is best consumed with a stiff drink in hand.
At best, the cocktail could help understand the most confusing bill in three years of legal US sports betting. In the worst case, a libation will make it easier to stop reading the messed up mess and not feel guilty about the lost time.
Governor Andrew Cuomo clearly won his power struggle with state legislatures over the implementation of mobile sports betting in New York. The bill, unveiled on Tuesday evening, aims to create a state monopoly almost identical to Cuomo’s in January.
However, the serpentine path it suggests going there is a reminder of a drunk friend snaking dangerously down the sidewalk after a night of festivities.
Details of the NY mobile sports betting schedule
In its raw form, the bill directs the New York State Gaming Commission (NYGC) to apply a competitive tendering process in order to select two platform providers for the operation of at least four mobile sports betting skins. The Commission could add other platform providers later at its own discretion.
(Wait, what’s the difference between a platform provider and a mobile sports betting provider? Would a provider choose a provider? Please consult your lawyer or clairvoyant instead of reading the definitions of the GobbledyGook in the bill. Let’s just move on …)
The two providers would both pay a once $ 25 million fee For a 10 year license. You would owe one too $ 5 million Annual payment to the casino where the mobile betting servers are located. The tax rate (or revenue sharing as it is known in other lottery-operated states) would be determined through the bidding process.
For comparison, DraftKings won that New Hampshire Process by which this is modeled with a 51% Revenue sharing requirement. In turn, DraftKings became the state’s sole provider.
NY Sports Betting Bid Process Based On …?
The New York bidding process would begin July 1, 2021 and allow 30 days for submitting proposals.
The NYGC would then have up to 150 days To order proposals according to a scoring system that does not yet exist, with the exception of a provision that gives additional points to operators who work with tribal casinos. The bill lists subjective qualifying factors, including plans to capture offshore weather and marketing strategy.
(In short, operators would blindly bid against each other to give Cuomo the greatest bonus for the privilege of running a New York sportsbook. The commission would put together a ranking system over the next 11 weeks to objectively determine which girl was the fairest is.)
From the second year the licensees would deliver at least 6 million dollars annually for responsible gaming and at least $ 5 million for youth sports programs in underserved communities.
How did the New York sports betting plan come about?
Weeks ago, Cuomo and both legislatures agreed to include mobile sports betting in New York in the state budget. Sen. Joe Addabbo and Rep. Gary Pretlow pushed for an open, competitive model with up to 14th Skins – two each for seven state casinos.
The negotiations left too little movement at Cuomo, who has refused to consider mobile betting for the past few years. The embattled governor remains convinced that a state monopoly will maximize revenue for the state.
Show budget projections $ 99 million in government revenue for the remainder of the fiscal year and $ 357 million for the second year with $ 500 million in the third. A January LSR analysis found that Cuomo’s plan to reap $ 500 million annually from sports betting in New York is likely a fantasy.
This breakdown suggested that Cuomo’s model would suggest that New York should generate $ 500 million in taxes that the state would have to pay $ 13.5 billion under control. In contrast, New Jersey almost saw 6 billion dollars under control in 2020, which likely included a healthy number of New York gamblers.
Tribal concerns linger in New York
As the original budget deadline of April 1st drew nearer to the legislature, covering the territory of the Oneida Nation expressed concern about the nascent agreement. They said Cuomo’s plan could work 10 Upstate Counties from NY Sports Betting, after Senator Joe Griffo::
“It is a terrible public policy to exclude large swathes of New York State from participating in mobile betting and it would be unfair for these residents,” Griffo said. “If tribal nations were not included in the final bill of the state, we would potentially be disenfranchised millions of New Yorkers from participating in mobile sports betting and the economic benefits that it brings.”
The Oneida Nation released a statement Tuesday evening to the Buffalo News clarifying that they do not see this issue as closed:
“We are disappointed and believe the legislation is a step backwards as the state appears to expect the Oneida Indian Nation to bid for the right to offer mobile sports betting in our own 10-county zone that the nation already owns the state and the nation for Localities paid approximately $ 70 million a year for game exclusivity under our 2013 settlement agreement.
“The nation had worked hard with multiple parties to negotiate a compromise that worked for all. It was approved by the Assembly and the Senate, and approved by all the tribal and commercial casinos. It is regrettable that the state has instead chosen such an unbalanced approach that it will cause unnecessary damage to our region. We remain open to discussing workable solutions when the state is ready. “
The perceived threat from future legal action appears to be floating in Albania’s air.
NY Sports Betting Bill Summary
Bettors bet more than $ 47 billion and created $ 3.3 billion Revenue in approximately the first three years of legal US sports betting. States collected a combined $ 467 million In these times.
They used one of two basic versions of sports betting: either a competitive model like New Jersey or a lottery monopoly like Oregon. Even if Illinois decided to get shy when trying to lock out DraftKings and FanDuelThe basic principles of the bill were recognizable, if ugly.
New York arrives today with the obvious intention of reinventing the wheel of a car that speeds across the street George Washington Bridge keep betting in New Jersey.
Inclusion in the state budget greatly increases the chances of this sports betting plan going into effect in New York. Still, legal challenges seem almost certain, be it from the Oneida Nation or from casinos that have been relegated as landlords for servers.
Let’s not forget that mobile sports betting in New York felt unreachable year after year to this day. But what exactly did that do Empire State Afford?