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Gov. Cuomo to embrace online betting — says New York could be ‘largest sports wagering market in the United States’
Weston Blasi.
Sports betting stocks got a boost in the days after Cuomo said he would support legalized sports wagering in New York.
New York Gov. Andrew Cuomo.
Referenced Symbols.
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.
“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.
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Online gaming, sports betting off to roaring start in Michigan.
In-person sports betting in Michigan launched in March. Last week, bettors were able to place wagers online. (Photo by Edward Pevos | MLive)
Watching last weekend’s NFL conference championship games and other sporting events was a more enthralling experience than usual for Jack Abate, of Royal Oak.
Abate, 31, was one of thousands of Michiganders to take advantage of the highly anticipated launch of online gaming and sports betting in the state. At noon Friday, 10 Michigan casinos and their platform providers went live, offering either online sports betting, online gaming, or both.
By all accounts, the first few days were a huge success.
“There were no real reports of any outages -- maybe some lag here and there -- but nothing overly out of the norm in that regard. And also you had a great weekend for an opening. You had the conference championship games and you had the added bonus of a high-profile UFC fight (Dustin Poirier vs. Conor McGregor). So all in all, with the exception of maybe starting on Super Bowl Friday or the first round of the NCAA Tournament, you’re not going to get a much better opening slot.”
Michigan Gaming Control Board executive director Richard Kalm said revenue and wagering numbers from the opening weekend are not yet available, but there was a high level of activity.
Michigan and Virginia both launched online gambling late last week and combined for 7.5 million online gambling transactions across 400,000 accounts, according to data from GeoComply, which provides geolocation tracking services for the internet gaming industry.
Michigan and Virginia accounted for 25 percent of the overall volume last weekend across the U.S. market, which encompasses 17 states with legal online betting.
With Virginia launching just two operators, Altruda estimated two-thirds of the weekend’s new accounts and transactions were from Michigan.
Abate was one of many to partake in the jam-packed sports weekend. He said he signed up with two operators and placed about 10 or 12 bets, wagering on the moneyline and points total for the football games while focusing on props and various boost bets on basketball and hockey games.
“It kind of gives you a little bit more incentive to tune into a game that you may not have paid attention otherwise,” Abate said. “I’m not a big fancy guy for basketball, hockey or baseball, but now with online sports betting, it makes it a little bit more enjoyable to maybe turn on a game when any of my teams aren’t playing and sit down and watch maybe root for an over/under, a prop bet or something like that.
“Moving forward, I think people are gonna tune in to maybe an offseason sport that they may not be into as much now they can put some money on the line, have a little bit more skin in the game.”
Mike Raffensperger, chief marketing officer of FanDuel, which operates an online sportsbook and casino in nine other states, said he is encouraged by the company’s start in Michigan.
“Honestly, it was a kick-(butt) weekend,” Raffensperger told MLive. “I think our projections have proven right. Michigan has launched with incredible fanfare. I think we have exceeded our expectations in terms of consumer appetite for both our sports betting and our online casino product.”
Raffensperger declined to share specific numbers but said Michigan was “one of if not our most successful state launch.”
Penn National Gaming, Inc. which has partnered with Barstool Sportsbook, said on Twitter that it received more than $2 million in first-time deposits from players over the weekend.
Meanwhile, BetMGM reported that it had more than 200,000 successful logins by customers and more than 2 million casino spins in the first seven hours of going live.
“BetMGM’s launch in Michigan has been our strongest launch yet, by some margin,” BetMGM CEO Adam Greenblatt said in a statement. “The strength of demand has been impressive in both sports and gaming.”
Some of the most popular promotions were near-lock bets some operators were offering. For example, DraftKings offered a prop bet where consumers could double their money (up to a certain amount) if the Pistons made a single 3-pointer in one of their recent games.
FanDuel paid more than $1.7 million to Michigan customers on odds boost wins over the weekend, such as doubling the consumers’ money if the Pistons scored more than 10 points in the first quarter.
“They made it really fun and easy, whether it was your first time gambling or whether you’re a seasoned guy at sportsbook,” Abate said. “With tailoring things specific to Michigan, like Pistons prop bets or Red Wings, Michigan basketball and all that, I enjoyed that. The boosts made it fun.”
The online sports betting rate in Michigan is 8.4% after winnings are paid out, one of the lowest among states with legal sports betting. The tax and payment rate for internet gaming ranges from about 20% to 28%, depending on how much money a casino generates from online gambling.
Because of the competitive tax rates in the state, operators are enticed by the market. Kalm said five more operators are expected to receive MGCB approval shortly, giving consumers more options.
Overall, Altruda believes Michigan will be a top-five market in the country, along with New Jersey, Pennsylvania, Illinois and Nevada. He said he expects Michigan to reach a monthly handle of about $500 million, but noted that could vary based on different sports seasons.
Online gaming has the potential to bring in tens of thousands of dollars in tax revenue for the state, but Kalm said more time is needed to get an accurate projection.
“You’re going to need a longer picture at this,” he told MLive. “It’s a few weeks before the Super Bowl. It was a big betting weekend for the football playoffs, March Madness is coming, so there’s a lot of activity going on. You really have to look at this on a quarterly basis, spread it out a little bit more to see where Michigan is going to be and how they are going to compare to other states and what the actual revenue numbers are. And we don’t have all our operators up yet.”
Regardless, launching before the Super Bowl was paramount.
“It’s huge in the sense that you’re getting in the largest single betting sports event of the year,” Altruda said. “You’re getting attention, you’re attracting eyeballs, you’re going to get the normal sports bettors, but you’re also going to get the average sports bettors. The ability to attract the average bettor, who may only place one or two wagers at the same time, is now a registered user that you can reach out to and still draw from as a potential base in addition to the sports fans who are going to make multiple bets daily, monthly.”
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Letting Andrew Cuomo run online sports gambling is a very bad bet.
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It was probably inevitable that legal sports betting would come to New York state. But the manner in which Gov. Cuomo is proposing to adopt it hurts consumers by limiting betting sites and further weds the state’s budget health to gambling — which disproportionately lures and effectively taxes the poor and undermines the work ethic.
Online sports betting, legalized by the Supreme Court in 2017, is here to stay. National Football League broadcasts highlight it; commercial breaks include DraftKings ads as much as Clydesdales. But legalizing the practice doesn’t mean state governments should control it.
That’s Cuomo’s plan: using the state lottery commission to license specific gambling sites that would agree to share the most revenue with the state. An open market, such as one linked to casinos, is anathema for the governor. Says Cuomo: “I’m not here to make casinos a lot of money. I’m here to raise funds for the state.”
State budget director Robert Mujica doubles down on the point, projecting $500 million that “would go to the state budget. Otherwise, for the bettors, it’s seamless and it’s exactly the same. The only difference is the state gets the money versus others.”
Of course, it isn’t the same for the gamblers. There are at least 10 major online sports-betting services. New York would limit options — and have every reason to license those offering the best odds for the state, not the bettor.
That fails what former New York Deputy Mayor Steve Goldsmith likes to call the “yellow pages test”: When one can find plenty of private providers in the phone books, there is no reason for government to supply the service itself or to limit the number who may. Indeed, by Cuomo’s logic, the state could limit the number of entrants in any industry — and require the anointed to pony up money to the state or be barred from New York.
That’s called corporatism — and it has stifled economies all over the world.
But the implications of Cuomo’s plan get worse. The sports-betting regime would amplify the sins of the state lottery, which it would emulate. By relying on lottery revenues to balance the budget, the state lottery commission must constantly lure the desperate to play a game in which the odds are stacked against them. They do so through the nation’s largest lottery ad budget, constantly painting an unrealizable picture of leisure.
“The most common form of lottery advertisement encourages ‘magical thinking’ by highlighting potentially life-changing effects of winning the lottery,” writes Andrew Clott, a Chicago attorney who has served as managing editor of the Loyola University Chicago Consumer Law Journal. “Typical advertisements focus on hard-working, blue-collar individuals who took a chance on buying a ticket and won big.”


‘New era’ of gambling in Michigan begins -- Online sports betting goes live Friday.
You must be at least 21-years-old to participate.
Ken Haddad, Digital Content Manager.
DETROIT – Starting at noon, Friday, online sports betting was allowed for the first time in Michigan.
It’s not just sports betting, but online gambling also has gone live.
Casinos will work with online apps that users would download onto their phone. The MGM Casino is using Roar Digital, Motor City Casino is using FanDuel and Greektown Casino is using Penn Sports Interactive.
There are several native tribal casinos that have been approved as well. They have partnered with Draft Kings, Golden Nugget and others.
The online apps require the user to verify their location within Michigan using the GPS in one’s phone or smart device.
Similar to Michigan legalizing marijuana in 2018, it’s a new way to regulate a business that already had billions of dollars coming through it.
Casinos offering online games like blackjack will pay a tax of between 20% and 28%, depending on their amount of adjusted gross receipts. Net new annual revenues to the state and Detroit, which has commercial casinos, are projected to total $18.6 million and $13.7 million respectively, according to the Michigan Department of Treasury.
Attorney General Dana Nessel said residents should be careful with the application and to read the fine print.
“In some instances, site users may be required to spend or deposit a certain amount of money into an account before receiving their free play credits,” Nessel said. “Users should make themselves aware of such conditions so they are not taken off guard.”
The operators authorized to begin online offerings Jan. 22 are:
Copyright 2021 by WDIV ClickOnDetroit - All rights reserved.




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