Mobile sports betting launched in New York

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Aaron Rodgers # 12 of the Green Bay Packers appears to pass during a game against the Seattle Seahawks at Lambeau Field on November 14, 2021 in Green Bay, Wisconsin.

Stacy Revere | Getty Images

Legalized mobile sports betting is now live in New York.

FanDuel, DraftKings, Caesars Sportsbook and Rush Street Interactive, the first companies licensed by the New York State Gaming Commission to offer mobile betting on sports games, can launch their sports betting in the state at 9 a.m. ET today.

New York is the fourth most populous state in the United States. and is now the largest state to legalize sports betting. This will not, however, lead to an immediate injection of money into the coffers of gambling companies. New York has a hefty 51% tax on gambling revenue – much larger than New Jersey’s 13% rate. Research firm Eilers & Krejcik Gaming estimates that New York will not replace New Jersey as the nation’s leader in gross gaming revenue – the amount of money players bet minus the amount they win – until 2024 .

Yet that doesn’t change the long-term significance of today’s metaphorical ribbon cut, said Patrick Keane, managing director of The Action Network, a media platform for sports bettors.

“This is arguably the greatest day in sports betting history,” Keane said. “And that’s magically positioned with the first and final 17-game season in NFL history.”

The final list of National Football League regular season games is tomorrow. The launch will give New York sports fans an instant opportunity to download apps and place bets on the NFL, the most popular American sport to bet on. It also presents a valuable marketing opportunity for the top four companies to accumulate New York customers. with promotional offers on their first bets.

Five other gambling companies – Bally Bet, BetMGM, WynnBet, PointsBet and Empire Resorts – have 10-year online sports betting licenses in New York City, but have yet to meet legal and regulatory requirements. to be put online.

Sports betting is on the rise

In December, more than two dozen states have already legalized sports betting, although many only allow in-person play. FanDuel and DraftKings have established themselves as the early leaders in the mobile sports betting market, but domestic revenues remain relatively low.

U.S. gambling companies generated an estimated $ 3.25 billion in total revenue from sports betting in 2021, according to Eilers & Krejcik. About 20% of that came from New Jersey – the highest number of any state. New Jersey legalized mobile sports betting in 2018.

Investors are counting on increased betting as states including California and Texas get ready to vote on mobile legalization. Annual gambling revenues in the United States could reach nearly $ 17 billion by 2026, according to Eilers & Krejcik.

“Every state is considering legalizing sports betting like DraftKings,” Matt Kalish, North American president and co-founder of DraftKings, said Friday on CNBC’s “Squawk Box.” “This is an extremely popular question. In some recent referendums, such as in Maryland or Louisiana, more than 70% of the vote supported the legalization of sports betting. It is a good way to increase tax revenues, create jobs in the state and finance important projects.

Worsening investor sentiment

Disclosure: Comcast, parent company of CNBC, and NBC Sports are investors in FanDuel.

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