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Regulation of Mobile Betting in New York Hits A Stumbling Block
By Jeff Osienya Jun 04, 2020 IndustryNow that the New York State Gaming Commission has extended the submission deadline of a mobile gambling market study from Spectrum Gaming Group, the New Yorkers’ dreams for mobile betting have just vanished into thin air.The future of mobile sports betting in the Empire State continues to be uncertain after the New York State Gaming Commission (NYSGC) announced that it has granted the Spectrum Gaming Group extra time for the submission of a gaming-market study report. The study had been scheduled for a 1st June submission date but the state regulator cited the unforeseen impact of the Coronavirus to the state’s gaming environment as reason to grant the extension.
Had the report been ready, a lot of industry experts were confident that it would have possibly given lawmakers the direction and push they needed to approve the activity, rather than just being stuck in a series of endlessly intense debating.
What is the Role of Spectrum Gaming Group in the Regulation?
The Spectrum Gaming Group is an independent consultation firm that specializes in the financial side of policies and regulation of legal gambling markets across the globe. For close to three decades, the company has been offering non-partisan research and expert services such as RFP developments, public policy advisory, market projections and tech requirements for regions heading towards gaming regulation. It won the right for conducting New York’s gaming market study back in November 2019 after edging out two similar consultation agencies.
It is the same Spectrum Gaming Group that crafted an RFP for the Rhode Island State Lottery with an outline of the state’s qualifications for sports betting operators and soon after, the state added mobile sports betting in August 2019. Moreover, in December 2018 as well, Spectrum also furnished the District of Columbia with a 50-page report that analyzed the economic impact of operating sports betting via the DC Lottery. This was a few days after the D.C Council greenlit sports betting.
Thus, through a New York market study report, Spectrum’s findings could for instance shed light on how the state’s introduction of mobile sports betting could draw in more players to birth a booming economic activity.
Sitting on the Sidelines is Costing the Empire State Millions
New York lawmakers and the state gaming watchdog have failed to come to a consensus on mobile sports betting for two years since the PASPA was repealed by the Supreme Court. While the Empire State continues to sit on the sidelines, neighboring states like Pennsylvania, Rhode Island and New Jersey are raking in millions in revenue from legal sports betting. Moreover, other nearby states like Vermont, Massachusetts and Connecticut are also making strides towards the regulation of interactive sports betting in the coming months.
Taking an example of New Jersey before the COVID-19 pandemic affected the industry, the Garden State reported a handle of close to $500m in February, and nearly 90% of these wagers were placed via the internet. Besides, since August 2019, New Jersey has been reporting a handle of over 400 million from online betting. New York on the other hand is wasting a chance that could earn the state $60m in annual licensing fees and another $30m in annual taxation revenue, at least according to Joseph Addabbo, the chairman of the Senate Racing, Gaming and Wagering Committee.
Contrary to popular opinion in legal circles in the state, Governor Andrew Cuomo insists that there’s need for a constitutional amendment for mobile sports betting to become legal in New York. But then, Cuomo’s path to regulation would take at least three years given that a constitutional amendment has to be endorsed in two consecutive legislature sessions before the approval baton is passed to voters.
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