Stock

: New York formally approves authorized on-line sports activities betting

New York State has announced that it will approve a budget for fiscal year 2022 that will enable legal online betting in the state for the first time.

Additional reports from the Action Network and Buffalo News suggest that the plan to implement online sports betting will be some form of a limited-operator model advocated by New York Governor Andrew Cuomo.

Cuomo has said he wants to run the state's sports betting industry through the government-run New York Lottery. According to his plan, the New York Lottery would only ask a few cellular betting providers for suggestions, which, according to PlayNY, they could then license to other sports betting providers.

“We want to do sports betting like the state operates the lottery, in which the state generates the revenue. Many states have made sports betting, but they basically allow casinos to conduct their own gambling operations. That makes a lot of money for casinos, but little money for the state, ”Cuomo said in January of his plan.

"And I'm not here to make a lot of money at casinos. I'm here to raise money for the state. So we have a different model for sports betting."

Cuomo's proposal to host the New York Lottery sports betting was disapproved by lawmakers due to a lack of competition and constitutional concerns. It is also very different from the way other states offer online sports betting. States like Pennsylvania and New Jersey allow several casinos to operate legally, forcing more competition for customers.

Governor Cuomo and New York lawmakers announced that an agreement has been reached on the state budget, but few more details are known as of now on the details of the sports betting plan.

Sports betting is already technically legal in New York state, but is limited to in-person betting at four New York state casinos. Online betting is not currently allowed in any part of New York.

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When it comes to online betting, most of the betting takes place in states that offer both types of betting. For example, over 90% of all bets in neighboring New Jersey are made online. New York would be by far the most populous state to offer online sports betting.

A recent report showed approximately 20% of New Jersey Sports Betting comes from New York City.

Sports betting stocks moved only marginally during Tuesday's trading. DraftKings
DKNG,
+ 1.87%
gained 1.8%, Penn National Gaming
PENN,
-2.57%
was down 2.5%, Caesars Entertainment
CZR,
+ 2.57%
was up 2.5% was up 5.5%, MGM Resorts
MGM,
-0.43%
was down 0.4%.

The Roundhill Sports Betting & iGaming ETF
BETZ,
+ 0.56%,
An animal-weighted index of global sports betting and iGaming companies rose 0.5% on Tuesday.

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