Online sportsbooks officially launched on January 8, 2022, in New York. The legislature was passed in April 2021 but it took time for the first online sportsbooks to open in the state. There are currently nine different sportsbooks available to residents in NY. Those sportsbooks include FanDuel, DraftKings, Caesars, BetMGM, Fanatics, BetRivers, WynnBET, Bally Bet, and Resorts World Bet.
This past weekend, a pair of gaming items were removed from the state budget. Residents can no longer place wagers on sports betting award futures. Additionally, language that would have authorized 1% of online NY Sports betting tax revenue to go towards problem gambling has also been removed. New York Senator Joe Addabbo told Legal Sports Report that these two items would be revisited during the post-budget session.
What is problem gambling and how are major sportsbooks helping with this nationwide issue?
By definition, problem gambling can negatively affect a person’s life via their family, personal life, or recreational activities. There are an estimated two million Americans who meet the criteria for problem gambling. Additionally, another five to eight million meet the criteria for a mild or moderate gambling problem. U.S. Rep. Paul Tonko of New York has introduced legislation that will crack down on the “public health crisis”.
In his proposed legislation, Tonko wants to regulate gaming advertising, limit size deposits, and restrict how AI is used to attract new customers. Top sportsbooks around the country have also partnered together to form the Responsvile Online Gaming Association (ROGA). Together they account for more than 85% of all online legal sports betting markets. They’ve collectively pledged more than $20 million in efforts to fund ROGA and help address problem gambling in the United States.
Joe Addobbo is trying to fight for the expansion of New York sports betting
According to Joe Addobbo, the state messed up. They’re banning prop bets and award futures when there’s another issue at hand. Problem gambling is a problem that New York is trying to tackle head-on. In 2023-24, the state contributed $6 million to helping problem gamblers. If the legislation to authorize 1% of NY Sports Betting revenue was passed, New York would have had an extra $3 million. Bringing their total to $9 million for the year. Additionally, New York generated $895 million in tax revenues from April 2023 – March 2024.
Senator Addobbo is backing online casino gaming to be legalized in New York. His legislation has failed to gain traction Addobbo told Legal Sports Report he wants NY to be a model for other states. Mr. Addobbo hopes to rehash these issues again at the Hotel and Gaming Trades Council. The HTC opposes iGaming explanation and it won’t be easy for Joe Addobbo to have legislation passed.