Mobile sports betting goes live in New York
Aaron Rodgers #12 of the Green Bay Packers hopes to pass in a match against the Seattle Seahawks at Lambeau field on November 14, 2021, Green Bay, Wisconsin.
Stacy Revere | Getty Images
New York is the first city to legalize mobile betting on sports.
FanDuel, DraftKings, CaesarsSportbook Rush Street InteractiveThe first company to allow mobile betting for sports was ‘NYS Gaming Commission.’ They launched their state-licensed sportsbooks at nine o’clock in the morning. ET today.
New York City is The fourth most populous state in the U.S. Now, it is the most populous state that has legalized sports betting. However, this won’t immediately result in an injection of money into the pockets of gambling businesses. New York has an onerous 51% tax on gambling revenue — far larger than New Jersey’s 13% rate. Research firm Eilers & Krejcik Gaming estimates New York won’t replace New Jersey as the national leader in gross gaming revenue — the amount of money players wager minus the amount they win — until 2024.
However, this doesn’t change the significance of today’s metaphorical ribbon-cutting. Patrick Keane is chief executive at The Action Network, which is a media site aimed at betting sports.
Keane stated, “It is arguably the largest day in the history sports betting.” And it is magically positioned with 17-game seasons in NFL history.
Tomorrow is the last regular-season game slate for the National Football League. New Yorkers will have the opportunity to instantly download the apps and bet on the NFL. It is the most loved American sports league.
Five other gambling companies — Bally Bet, BetMGM, WynnBet, PointsBet and Empire Resorts — have 10-year online sports betting licenses in New York but haven’t yet passed statutory and regulatory requirements to go live.
There are more than 20 states as of December have already legalized sports wageringMany permit only in-person gaming. FanDuel & DraftKings were the first to offer mobile sports betting. However, national revenue remains low.
U.S. gambling companies generated about $3.25 billion in total revenue from sports betting in 2021, according to Eilers & Krejcik. About 20% of that came from New Jersey — the most of any state. New Jersey legalized mobile sports betting in 2018.
As the number of states includes, investors are betting on an increase in wagering. CaliforniaAnd TexasPrepare to vote for mobile legalization. Annual U.S. gambling revenue may grow to nearly $17 billion by 2026, according to Eilers & Krejcik.
Matt Kalish (North America president, cofounder of DraftKings), stated Friday that every state was considering legalizing DraftKings. on CNBC’s “Squawk Box.” “It is a very popular issue. Over 70% of voters supported legalizing betting in sports, as demonstrated by recent elections in Louisiana and Maryland. This is a great way to increase tax revenue and create jobs for the state. It also helps fund important projects.
High future taxes like New York’s rate of 51%, however, are a problem. ballooning marketing budgetsInvestor appeal has been reduced in some cases. DraftKingsPointsBet shares and PointsBet have declined more than 60% over the last 52 weeks.
Companies have spent hundreds of millions to get customers because there are so many mobile betting companies that offer similar products. One media executive told CNBCHe predicts that a large sports betting company will go bust or be sold “for peanuts” in this year’s market, given the high competition and high cost of acquiring customers.
Disclosure: CNBC parent Comcast and NBC Sports are investors in FanDuel.