Sports Betting Mobile
The NY sports betting proposal some legislators appear to favor over Gov. Andrew Cuomo‘s state-run model is getting support in both chambers.
As for mobile sports betting, state Budget Director Robert Mujica said states that have legalized it haven't reaped the windfall as much as the casinos. Under the state's plan to run the system. Feb 01, 2021 The latest innovation in the world of sports betting is mobile sports betting apps. Mobile sportsbooks bring you the convenience of online sports betting with the flexibility of being able to use your smartphone. A Pew Research study found that 77% of Americans own smartphones, while more than 200 million people bet on sports each year.
Dec 02, 2020 Michigan Lawmakers Approve Regulations for Mobile Sports Betting, Online Casinos. Posted on: December 2, 2020, 10:31h. Last updated on: December 2, 2020, 11:11h. Sports fans in Iowa can begin legal sports betting online in Iowa through BetMGM Sportsbook as of today, as BetMGM debuted their mobile sports betting products to customers in Iowa state.
The New York Senate voted S 1183 out of committee on Tuesday. The Assembly followed suit, voting A 1257 out of committee on Wednesday.
Multiple members of the assembly voiced enthusiastic support for the legislation and sponsor Assemblyman Gary Pretlow. The bill offers a much different model than Cuomo’s plan for a state-run format that his office claims would lead to more revenue.
One or more operators would be selected through an RFP to offer sports betting in New York in Cuomo’s proposal.
“I just want to say congratulations, Gary,” said Assemblywoman Aileen Gunther. “You’ve worked so long on this and I tell you, I think this is the time to pass this.”
Details of NY sports betting bill
The legislative proposal, primarily sponsored by Pretlow and Sen. Joe Addabbo Jr., has these features:
- The bill allows the state’s four full commercial casinos and three tribal operators to partner with two mobile sportsbooks each. That would mean up to 14 sports betting operators in New York even before the future downstate casinos are considered.
- Each online sportsbook operator would have to pay a one-time $12 million fee. That could equal $168 million in state revenue before anyone takes a bet if all 14 licenses are used. The upfront cash could help sway legislators to a yes vote.
- Professional sports stadiums and off-track betting facilities can partner with a casino to host betting kiosks.
- Sports betting revenue would be taxed at 8.5% for retail bets and 12% for online bets. Five percent of those tax revenues will go toward problem gambling programs – more on that in the negatives section, unfortunately.
- Online registration is allowed.
Should the proposal become law, Pretlow doesn’t intend to let the gaming commission drag its feet as it did with retail sports betting.
“I believe that this is so popular that they will be pressured by numerous individuals across the state to rush the regulations,” Pretlow said. “Because they could start writing regulations right now if they wanted to.
“So I’m pretty sure that we’re going to pressure them into doing something a lot quicker than they did with the sports betting that took over a year to put into place.”
Pretlow expects how much handle?
One assemblyman brought up New Jersey‘s sports betting success, which sent Pretlow off on a tangent:
“Thirty percent of the numbers that Jersey’s putting up are New York numbers,” Pretlow said. “That’s by their own admission so it more than likely is more. New York state is two and a half times the size of New Jersey so we’re going to at least double.
“Right now, in the last month they’re doing a billion dollars of handle a month. A billion dollars, $12 billion a year. We’re going to do at least twice that. So we do $2 billion a month or $2.5 billion a month, I think that all of our expectations will be met.”
Pretlow was correct to say NJ sports betting brought in $1 billion in handle last month, but the $12 billion a year mark is inaccurate. New Jersey finished 2020 with $6 billion in handle.
It’s also awfully bullish to expect $2 billion to $2.5 billion to be bet every single month, especially at launch.
Handle is a bit higher than Cuomo’s expectations
Pretlow’s assumed market size is a bit bigger than what the governor expects out of his monopoly model. Cuomo expects $500 million in revenue annually from his state-run model compared to $50 million from an open model. Based on traditional 5% hold, Cuomo’s model assumes $20 billion in annual handle.
That $500 million would take time of course. The fiscal 2022 budget suggests $49 million in revenue with a quick ramp-up to $357 million in fiscal 2023, $465 million in fiscal 2024 and $493 million in fiscal 2025.
While there is no fiscal note for Pretlow’s bill, we can get close to the likely estimates. With 5% hold and 90% of bets coming online, the $24 billion to $30 billion in handle Pretlow expects would generate $1.2 billion to $1.5 billion in operator revenue.
That would suggest between $139.8 million and $174.8 million in annual tax revenue under Pretlow’s plan. That’s certainly better than $50 million annually but might not be close enough to Cuomo’s pipe dream for him to support the proposal.
Leagues should be thrilled with NY sports betting bill
There are a few hiccups in the bill, including a double-dip for sports leagues.
Along with requiring official league data for live betting, operators also must pay 0.2% of the handle wagered on a specific sport to that sport’s governing body as an integrity fee for the leagues.
Pretlow, who has long called for an integrity fee, echoed the reasoning the leagues have tried to pass off on legislators since PASPA ended.
“There is a small piece we take from the bookie and give to the leagues and the overseers of the sports, like the NFL, the PGA,” Pretlow said. “That money is used for them to enhance their watching of the player activity.”
Elsewhere in NY sports betting bill
There are a couple of other potential knocks against Pretlow and Addabbo’s proposal.
The bill takes a somewtha cold stance toward problem gambling for anyone 30 or older. Problem gambling programs crafted by the NY State Gaming Commission will craft programs to “address problem gaming by users under the age of thirty.”
The annual report on problem gambling will also include “an assessment of problem gaming among persons under the age of thirty.”
There’s also no mention of expediting the unused three downstate casino licenses. The four upstate casinos received a head start that is supposed to end in 2023 but there have been attempts to move that date up.
Those licenses could go for $500 million apiece to help the state address immediate budget issues, as well as add six more mobile sportsbook licenses.
Sports Betting Mobile Ios
Cuomo’s budget includes a request for information from any companies interested in those licenses.
Mississippi sports betting is staying offline.
Three bills aiming to expand MS sports betting to mobile platforms in the state died in committee this week.
Mississippi was one of the first states to launch sports betting in 2018 but continues to be restricted to retail sportsbooks. Multiple mobile betting bills have failed in the years following legalization.
A seismic shift?
Currently, mobile betting is allowed on a casino’s property in the state. None of the state’s commercial casinos are using the so-called “Mississippi mobile” option though.
The three failed bills would have altered the betting landscape by bringing sports betting in Mississippi online:
- SB 2396 would have allowed each casino operator an online sportsbook.
- SB 2732 and HB 1042 proposed expanding existing legislation to carry online betting statewide.
Mississippi sports betting revenue hamstrung
Since launching in August 2018, Mississippi has generated $103 million in sports betting revenue, and $12.4 million in taxes on $890 million wagered.
In 2020, the state’s wagering created more than $43 million in revenue and $5.2 million in taxes. Unless the state’s 24 casino operators can open up statewide mobile, a wealth of potential tax revenue will continue to go into the illegal market.
“Every day millions of Americans in 15 states have access to state-of-the-art mobile sportsbooks, allowing them to place bets on their favorite teams and leagues at home while fostering much-needed tax revenue,” Sen. Philip Moransaid in a release introducing SB 2732. “Unfortunately, Mississippi law does not authorize online sports betting, but this bill seeks to change that.
“Mississippi has been leaving money on the table by not authorizing online sports wagering, and it is time to modernize Mississippi’s gambling offerings and do what’s best for Mississippians.”
Maturing MS sports betting market
Even without the extra betting mobile would bring, Mississippi is watching its monthly handle grow, hitting an all-time high of $61.1 million in October 2020.
The first half of 2020 was slowed because of COVID-19. As sports returned in August, however, the state’s monthly handles continue to grow year-over-year.
Sports Betting Mobile Application
Both November and December 2020 revenues more than doubled compared to 2019, drawing $8.1 million and $7.7 million respectively. Those numbers pale in comparison to markets with mobile wagering however.
Neighboring state potential
Neighboring Tennessee launched mobile-only betting in late 2020, while Alabama and Florida offer untapped potential. Arkansas has retail betting and Louisana voters approved sports betting in November 2020.
In November and December, Tennessee brought in $5.4 million in taxes through its mobile betting.
Ny Sports Betting Mobile
The ability to draw potential customers from neighboring states is dwindling, however. Multiple states legislatures are looking at legalizing sports betting.