Spectrum Gaming projects revenue from the betting market in New York

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Spectrum Gaming projects revenue from the betting market in New York
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A study by the Spectrum Gaming Group on the expansion of the market in New York suggests that mobile sports betting could cause the state to have annual revenue between $ 816 million and $ 1.41 billion.

The report was commissioned by the New York State Gaming Commission in 2019 and was originally expected to be delivered in December of that year. The date was postponed to June last year, before being suspended indefinitely as a result of the new coronavirus pandemic.

The study presents the potential returns for the state based on different scenarios from the expansion of the betting market. For sports betting, Spectrum examined a number of possibilities, providing models for the market three to five years after implementation.

The report showed that if New York maintains its status, allowing only face-to-face bets at its commercial and tribal casinos, the region will have between $ 66 million and $ 93 million in revenue per year. This, in turn, would generate returns through taxation of up to $ 5 million.

A limited expansion, where face-to-face betting remains the only legal option, but off-track betting and video lottery terminals are allowed, has also been evaluated. The bets would have a notable impact. Market revenue would be between $ 212 and $ 296 million, with tax hikes between $ 19 and $ 27 million.

Spectrum Gaming points to significant market growth with online betting release

Potential returns go up significantly when online betting is considered, ranging from $ 816 million to $ 1.14 billion. Spectrum Gaming estimated that this would be the same if mobile betting across the state were allowed only for commercial casinos or tribal operators.

However, if tribal operators are restricted to offering mobile services on their properties, this would slightly increase tax collection, according to the group’s projections. Under this model, the state could levy taxes in the range of $ 74 million to $ 104 million.

If tribes could operate across the state, tax collection would be slightly less, between $ 72 million and $ 99 million. However, both digital scenarios also take into account an expansion of the retail betting market.

However, the report lacks the framework for mobile betting supported by New York Governor Andrew Cuomo. Cuomo is advocating a model in which one or more providers would be selected through an offer, similar to the New Hampshire approach, where DraftKings has become the state’s exclusive betting provider.