Euphoria, then dismay welcome Andrew Cuomo's embrace of sports wagering. By David McKee

There's absolutely nothing like a budgetary dose of Covid-19 for some political leaders to have a come-to-Jesus minute about gaming. When it comes to New State Gov. Andrew Cuomo, there has been a remarkable volte-face on the concern of online sports betting. While sports betting exists in New York, it is just on a small-scale, in-person basis. Cuomo has long opposed mobile wagering on the grounds that it would require a constitutional change. No longer. Now Cuomo says it just takes the Legislature's say-so, as he searches for methods to plug Coronavirus-caused spaces in the Empire State budget plan. (Cuomo's even floated the legalization of cannabis.)

In a declaration revealing his change of mind, Cuomo wrote, "At a time when New York faces a historical deficit spending due to the ... pandemic, the existing online sports wagering structure incentivizes a large section of New york city homeowners to take a trip out of state to make online sports wagers or continue to buy from black markets ... New york city has the potential to be the largest sports wagering market in the United States, and by legalizing online sports wagering we aim to keep millions of dollars in tax income here in the house, which will only enhance our ability to rebuild from the COVID-19 crisis." How lots of millions? $72 million by a conservative price quote.

New york city could also claw back the 20 percent of New Jersey's sports-betting business that comes through the Holland Tunnel. That's $837 million in manage right there, in what could be a multi-billion-dollar market. JP Morgan expert Daniel Politzer pictures online sports wagering coming to market in 2023 and New York gathering $1.25 billion in income (not deal with) within two years. (This assumes favorable tax rates and guidelines, hardly an offered.)

Cuomo would couple OSB providers to existing casinos. FanDuel, DraftKings, FoxBet, bet365 and Bet Rivers already have boots on the ground. BetMGM and Twin Spires could get into the act if Cuomo's definition of gambling establishments is expanded to include racinos. Caesars Entertainment may also participate, as it is thought to have an arrangement with the Seneca Nation's Turning Stone casino. DraftKings, meanwhile, can leverage its relationships with the New york city Giants (football), New york city Rangers (hockey), New york city Knicks (basketball) and Madison Square Garden to build market share.

Getting Cuomo's dream passed in Albany is not a slam-dunk. The Legislature has actually been recalcitrant toward video gaming growth in current sessions, in part due to the failure of upstate gambling establishments to fulfill their income projections. Whether Native American people have exclusivity will almost certainly be litigated. However, making a convert of Cuomo surmounts the hurdle that has stymied mobile sports wagering in the past. Still, sports betting stocks sold down on the news, primarily due to the fact that Cuomo desires the state lottery game to administer OSB.

"I'm not here to make gambling establishments a great deal of money. I'm here to raise funds for the state. So we have a various design," the guv groused. "The implication being there would be a high tax rate, which the conventional B2C operators possibly would not have the ability to go into the marketplace," composed Credit Suisse expert Ben Chaiken.

Also, Cuomo's official demand for proposals would just use to four business gambling establishments, putting the three tribal ones on the outside looking in. "We interpret this as there being a single operator dealing with the state (most likely at an elevated tax rate), as we have seen with [DraftKings] in New Hampshire (50% tax)," Chaiken explained. If so, that would leave DraftKings, FanDuel, bet365 and Bet Rivers competing for one, comprehensive license. Another major player that could attempt to elbow its method is Penn National Gaming's Barstool Sports, which may discover either the Oneida or St. Regis Mohawk people responsive.

All of this leaves Cuomo in the catbird seat. As major OSB operators play musical chairs, knowing that only one will be seated when the music stops, the sky's the limit on what they will have to be prepared to provide.

* Originally composed February 2021 *