New York Gov. Andrew Cuomo has decided to push for online sports wagering in his state.
“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in tax revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis,” Cuomo said in a statement.
Cuomo had long pushed back against the idea of legalizing online sports betting, but events surrounding the COVID-19 pandemic seem to have changed his mind.
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“At a time when New York faces a historic budget deficit due to the COVID-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” Cuomo said.
Cuomo will give more details on the future of online sports wagering in New York during his State of the State address next week.
New York’s neighbor New Jersey has become an online sports wagering juggernaut in the past year, taking in over $4 billion in sports bets in 2020, according to the state. These bets generated $36.5 million in tax revenue for New Jersey.
Four casinos in upstate New York currently accept sports bets, but those bets are in-person only and only a small fraction of what online betting would be in the state. Over 90% of all bets made in New Jersey are made online, according to public data.
Many sports betting stocks jumped during Wednesday’s trading following the announcement. DraftKings
is up more than 4%, Penn National Gaming
is up 3% and Caesars Entertainment
is up 3.6%, MGM Resorts
is up over 4%.