You May Now Legally Wager on Sporting Events From Your Mobile Phone in New York

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: January 31, 2022

Legal mobile sports gambling has now become available in New York. The very first organizations approved by the NY State Gaming Commission to enable gambling on sporting events, Rush Street Interactive, DraftKings, FanDuel, and Caesars Sportsbook, recently started offering sports betting.

New York is the 4th largest state in the United States and has become the world’s biggest state to allow sports gambling. However, this will not result in the instant infusion of revenue into betting enterprises’ treasuries. New York levies a 51% tax on sports betting earnings, which is far higher than New Jersey’s 13%.

Eilers & Krejcik Gaming said that New York will not be able to surpass New Jersey in total gaming revenue until 2024. However, Patrick Keane, CEO of a gamer-focused media company, The Action Network, assumes that the recent landmark grand opening will be of lasting significance. Keane also said that this is arguably the greatest moment in the age of sports betting. And it fits correctly with the last 17-game NFL season.

The opening will provide New York gambling fans with immediate access to install applications and place bets on the National Football League, the most famous league in the United States. It also provides a good marketing chance for the first four firms to acquire New York clients by offering promotions to those placing their first bet.

Empire Resorts, WynnBet, PointsBet Bally Bet, and BetMGM have around 10-year sports gambling licenses in New York but now have failed to meet the legislative and regulatory standards to become operational.

Sports Betting is Becoming More Popular

Over twenty states have allowed sports betting as of December 2021, while many only legalized in-person sports betting. Due to the fact that DraftKings and FanDuel, have already established themselves as significant leading companies in online sports gambling, overall revenue figures stay low.

According to Eilers & Krejcik, American betting organizations made $3.25 billion in revenues through online gambling in 2021. New Jersey accounted for almost 20% of that, more than any other state. New Jersey legalized mobile sports betting in 2018.

As states such as Texas and California set to vote to legalize online gambling, investors are anticipating a rise in betting. As per Eilers & Krejcik, yearly betting earnings in the United States could reach roughly $17 billion by 2026.

Investor Sentiment is Deteriorating

However, higher taxes in the future, like New York’s 51% tax and increasing advertising expenses, have deterred few investors. In 2021, the shares of PointsBet and DraftKings had dropped by over 60%.

Organizations also had to invest large amounts of money in acquiring clients since there are lots of firms that offer comparable online gambling products. Considering the volume of competition and expensive costs to gain users, one media manager warned that the large sports betting firm would either go bankrupt or sell “for peanuts” in the year.

“This business model is flawed. The marketing spend in the U.S. is crazy” – said Jim Chanos about DraftKings last month.