Betting on Sports in New York: Tame Your Excitement

Honest to goodness, folks, take a seat before you jump to conclusions.

Gov. Cuomo of New York tossed out a tantalizing hint on Wednesday – a sneak peek of sports betting in the Empire State. But as they say, the devil is in the details, and we ain't got the full scoop yet.

So, what's the lowdown? Not much like a tug-of-war ad, the governor showed us a glimpse of a tightly controlled market and left us fretting about the fine print. Seems like Cuomo's playin' it cool, leave no room for the big boys of sports betting – no mention of the downstate casinos, racetracks, or our buddies from bet365, DraftKings, FanDuel, or Rush Street Interactive. Good news for the state, huh? Well, Cuomo stated he's not keen on sharing the wealth with casinos; he aims to rake in the big bucks for himself (the state, that is).

And folks, let's take a look at what happens when the state takes the reins – they seem to call up DraftKings and ask, "How 'bout we make you the one and only, huh?" In New Hampshire, where the market's as small as a shoebox, DraftKings forked over half the gross gaming revenue to the state in exchange for a monopoly. Wonder if they're willing to do it again? And New York lawmakers – the ones trying to look after their voters' interests – probably won't go for it. (Side note: I'd bet my monthly handle that New Hampshire lawmakers weren't too happy when their open, competitive market got replaced by one giant hand.)

So, is this a good deal for Cuomo and Co.? A lottery-run monopoly won't maximize the profits – unless they can somehow get DraftKings to cough up that sweetheart deal. And let's call a spade a spade: the big names in sports betting, like DraftKings, FanDuel, and Bet365, won't be too keen on being shut out – especially when they're leaders in handle and revenue in places like New Jersey, Illinois, and Colorado.

A New York Monopoly: A Total Disaster?

News pundits and stakeholders were pumped about Cuomo's tweet on Wednesday – bettors were even excited – but the version of statewide mobile sports betting he's pitching is a dud. Stakeholders are calling it an "upsetting," "disturbing," and total dumpster fire – not exactly the kind of energy you want surrounding one of the most populous states in the country stepping into the sports betting game.

Four operators – bet365, DraftKings, FanDuel, and Rush Street Interactive – are already offering retail sports betting in upstate casinos. But Ya boy Cuomo ain't playing fair: he strongly implied that only one of these operators will become the state's sports betting partner. If you ain't the chosen one, hard luck.

Analyst: Gamble on These Stocks, but Be Careful

Oh, and if you're invested in sports betting stocks, watch out. Analysts say there are some considerable risks here: the potential of operators getting cut out of the state, the state looking to make a killing, and a lottery-run model that won't hold a candle to neighboring states in terms of competition. But, hey, beware – New York's move could encourage other states to try and grab a bigger piece of the pie. So, game on!

What about Neighboring States?

New Jersey operators have had the region's sports betting market all sewn up for nearly three years, and it looks like New York might've just handed them another victory. With only one choice in New York, bettors are certain to continue crossing the border for better odds, deals, and unique offerings – the unsung hero of competition.

There are plenty of unanswered questions surrounding Cuomo's announcement – will the Lottery have skin in the game, how will the State Gaming Commission select the operator, will downstate casinos and racetracks be part of the expansion? And – maybe most importantly – will operators who aren't already in New York (like BetMGM, PointsBet, and Penn National/Barstool Sports) ever get a chance to enter the market?

In conclusion, there's a whole lot we still don't know. So, hang tight, folks – we'll find out more detail when Cuomo releases his full plan on January 19, good or bad. It's gonna be a fabulous show, I promise you that.

The teaser from Governor Cuomo about sports betting in New York left many wagerers fretful about the details, as a tightly controlled market was hinted at and the big players in the sports-betting industry were notably absent from the announcement.
The risks associated with the state's plan to potentially monopolize sports betting are becoming increasingly clear, with analysts warning that operators who aren't already in New York may find it difficult to enter the market, and the state-run model not holding a candle to neighboring states in terms of competition.
With only one choice in New York, sports-betting enthusiasts are likely to continue seeking out better odds, deals, and unique offerings in neighboring states like New Jersey, putting a strain on the competitiveness of the Empire State's sports-betting market.
As it stands, there are several unanswered questions surrounding Cuomo's sports-betting plan, including the role of the Lottery, the selection process for the state's sports-betting partner, the involvement of downstate casinos and racetracks, and the potential for other operators to enter the market in the future.