If New York includes an online sports betting plan in its fiscal year 2022 budget it will likely be one floated by Gov. Andrew Cuomo, which will limit the number of sportsbook operators and potential skins, according to a report.
Tom Precious of the Buffalo News reported earlier today that a New York online sports betting plan would mirror one endorsed by Cuomo, which would limit operators to one or two sportsbooks through a request for proposal process.
NYS Senate & Assembly have passed their 1st budget bills of the day. Now, with debt last week, 2 down and 8 to go. Revenue bill — including mobile sports betting — still not finalized, sources say. Tweak time maybe, but Cuomo's original sports bet idea will be it.
— Tom Precious (@TomPreciousALB) April 6, 2021
Good sources: Deal is pretty much at hand on mobile sports betting. Cuomo will largely get his plan (lottery style RFP for 1 operator).
BUT:
Other good sources: say talks still underway and deal this afternoon or it'll be punted til end-of-session or whenever.
Welcome to Albany.— Tom Precious (@TomPreciousALB) April 6, 2021
Assemb sports bet sponsor @JGPretlow just now: still under negotiation but gov has major budget powers and he won't budge from his position. It would be 2 operators, high tax rate and min of 4 skins, no max.
— Tom Precious (@TomPreciousALB) April 6, 2021
"I did what I could…The Legislature fought hard for its plan. Unfortunately the governor chose to go the route of New Hampshire. It didn't work for New Hampshire but hopefully it works for New York,'' Pretlow says.
— Tom Precious (@TomPreciousALB) April 6, 2021
Limited Operators And Skins In Cuomo’s Plan
Language in the proposed fiscal year 2022 executive budget noted the state would issue a request for proposals for a platform provider. Providers would only be eligible if they have a current partnership with at least one of the existing licensed commercial casinos in New York.
DraftKings, FanDuel, BetRivers and Bet365 all have partnerships with existing licensed commercial casinos.
Assemblyman J. Gary Pretlow and Sen. Joseph Addabbo Jr., the chair of the NYS Senate Racing, Gaming, and Wagering Committee, both favored a more competitive model that would have seen numerous operators and numerous skins, more akin to how New Jersey runs its online sports betting plan.
According to Precious, Pretlow said the NY online sports betting plan would be run by two operators, have a minimum of four skins and feature a high tax rate.
Cuomo’s plan would more closely mirror plans in New Hampshire and Rhode Island.
Negotiations are still ongoing and nothing is set in stone until the budgetary revenue bill is introduced and approved.
The State Comes First
Yesterday in a press conference call with reporters, Cuomo again expressed his desire for the state to be the main benefactor of any online sports gambling revenues.
“We’ll contract directly with the mobile sports vendor….we’ll contract with them and we’ll make the money. We don’t need the casinos as a middleman,” he said during the conference.
Cuomo and New York Budget Director Robert Mujica both said the state is drafting an online sports betting bill to honor the terms of the existing Oneida Nation compacts. The bill would not cut the nation or upstate counties out of potential online gambling revenue.