Legal sports betting in the state of New York has finally started to make some serious progress. On Monday, January 28, 2019, the New York State Gaming Commission gave preliminary approval to the rules and regulations that would allow sports wagering at the four upstate casinos.
The topic was not discussed by the six-member commission prior to voting. Now the proposed rules and regulations enter a 60-day public comment period before the commission can give their final approval.
The 33-page proposal contained guidelines for the licensing application, wager types, and tax and compliance requirements. The reading of the agenda by the commission made clear that the purpose of the rules is to “enable the four facilities to get running as soon as possible”
The four facilities covered by the regulations are Del Lago Resort & Casino, Tioga Downs Casino, Rivers Casino & Resort Schenectady and Resorts World Catskills.
Two major components were not included in the rules approved by the commission on Monday.
The biggest being no mobile betting. The staff specified the proposed rules “remain within the scope of activities the legislature authorized.” In New Jersey, online sports betting accounts for more than 62% of the state’s handle in 2018.
The second being no “integrity fee”. Major sports leagues have been calling for integrity fees from states that legalize sports betting. Mostly calling for one percent from states handle to go to the leagues to help protect the integrity of sports betting.
All four major sports leagues have their headquarters in New York. If any state were to accept the proposed one percent integrity fee, it would most likely be New York. Expect the leagues to make their voices heard during the 60-day comment period.
After the 60-day comment period, the comments will be reviewed and potentially modified. Once it is completed, the modified rules are sent back to the commission for a final vote.
If a constitutional change is required, it will result in a more time-consuming process. The amendment would need to be passed by two consecutive sessions of the state legislature before appearing on a referendum the following year. At the earliest, voters wouldn’t be able to decide on the measure until November 2021.
The New York Gaming Commission is scheduled to meet next on February 25.
Since the state had the law from 2013 and a constitutional amendment authorizing sports betting at the four commercial casinos in upstate New York on the books, all that was needed was for the Gaming Commission to issue the rules and regulations, as well as begin the licensing process.
While other states moved into sports betting since the PASPA ruling, New York remained in a bit of a standstill. The commission remained silent on the issue, perhaps waiting to see if the executive and legislative branches were going to expand sports betting during the budgetary process.
Governor Andrew Cuomo nudged regulators in the right direction in his State of the State address earlier in January. Cuomo stated,
We invested in upstate casinos. Let’s authorize sports betting in the upstate casinos. It’s here, it’s a reality, and it will help generate activity in those casinos.
Although still considered a long shot at this time, Senator Joseph Addabbo Jr. told Legal Sports Report that he is going to advocate for mobile wagering to be included in the final rules and regulations.
Addabbo, who is the chair of the Senate Racing, Wagering and Gaming Committee, says that neither a constitutional amendment or any further legislation is needed in New York to authorize mobile wagering at the state’s four commercial casinos. That is as long as the servers are located at the casinos and residents register for mobile accounts in person at those locations.
With New York City being hours away from the states four commercial casinos located upstate, it may become crucial for the state to develop some form of online or mobile sports betting. Most New York City bettors would continue to travel the short distance into New Jersey to place their mobile bets, as opposed to making the trip to upstate New York. Millions of dollars of revenue in New York City is being lost to New Jersey, due to a lack of mobile betting options in the Empire State.
All the partners for the state’s four commercial casinos operate mobile sports betting in other states. DraftKings Sportsbook for Del Lago, FanDuel Sportsbook for Tioga Downs, bet365 for Resorts World Catskills, and Rush Street Interactive for Rivers Casino & Resort Schenectady.
However, the possibility of mobile wagering seems to be eliminated based on how the rules are currently written:
“All wagers pursuant to this Part shall be placed within a sports wagering lounge with a wagering cashier at a wagering counter or at an automated ticket machine located within a sports wagering lounge or other location or other location within the gaming facility as approved by the commission.”
Although not included in these rules and regulations, tribal casinos in New York have legal reciprocity to offer any gambling games that are allowed at the state’s commercial casinos, including sports betting.
Earlier this year, the Oneida Indian Nation announced a partnership with Caesars Entertainment to bring sports betting to their three upstate casinos, Turning Stone Resort Casino, Yellow Brick Road Casino and Point Place Casino. The deal is still pending approval by the National Indian Gaming Commission and the issuance of New York sports betting regulations.
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