The state of New York has approved its budget for the 2022 fiscal year, which includes regulated online sports betting.
An announcement was made yesterday, in which it was also mentioned where all of the money would be divided.
According to reports elsewhere, the legal sports betting market in the Empire State will work on a limited operator model.
Online sports betting in New York: what will it look like?
The limited operator model was supported by State Governor Andrew Cuomo, though it had opposition elsewhere.
To offer regulated online sports betting in New York, operators will need to bid for a licence. State regulators will need to pick at least two platform providers, with a minimum of four operators or skins permitted.
“New York was ambushed early and hit hardest by COVID”
Upon announcing the budget, Cuomo talked about the state’s financial difficulties. New York was already dealing with a large budget deficit prior to COVID-19, but the pandemic did not make things easier.
He said: “New York was ambushed early and hit hardest by Covid, devastating our economy and requiring urgent and unprecedented emergency spending to manage the pandemic.”
According to him, the budget is “making historic investments to reimagine, rebuild and renew New York in the aftermath of the worst health and economic crisis in a century.”
A long road to regulated mobile and online sports betting
New York has already regulated sports betting in a limited capacity. However, only land-based wagering is currently permitted.
On the other side of the Hudson River, New Jersey has benefitted from New York’s restricted sports betting approach. In January 2021, the market hit a record of $82.6 million in overall revenue. Many have noted that since the state legalised the vertical, players crossing into New Jersey have contributed to both operator profits and tax revenue.
How will New York’s sports betting revenue be split?
Cuomo’s office believes that regulated sports betting will bring in an additional $500 million in state revenue once it’s ready to go.
State officials plan on allocating $5 million per year to youth sports. A further $6 million will be used to tackle problem gambling, which is double the current budget.
The remainder will be divided to improve education in New York.
Back in January, Cuomo talked about why he wanted a different operator model approach. He said: “Many states have done sports betting but they basically allow casinos to run their own gambling operations.
“That makes a lot of money for casinos, but it makes minimal money for the state. I’m not here to make casinos a lot of money, I’m here to raise funds for the state.”