New York was one of the states willing to give sports betting a try and provide its future field with the proper regulation. However, the lawmakers in the state could not make it in time for the official adjournment of the Assembly and the proposed sports wagering bill was not voted to be turned into law. The decision was therefore postponed until next year, but in the meantime experts in the field make their prognoses regarding the future wagering field which allegedly has the potential to surpass the Nevada one when it comes to gaming revenue.
The state of New York is infamous as the location which sees the highest rates of illegal betting on sports and this has been a common practice for quite some time now. Millions of dollars go to illicit bookmakers and entities operating in the gray sphere of the online gambling sector, which in turn harms both the industry and the community, as the amount of money amassed is not invested back in the development of the region.
Stephen Acquario is the Director of New York State Association of Counties, and back in February this year he stated that all of this could change if only the authorities decide to make a move and better the overall situation in Albany. The sports betting revenue is expected to go through the roof if the US Supreme Court rules in favor of legalizing the gambling activity, as there are so many people interested in participating in it and placing their wagers on their favorite sports teams.
Even though there was a proposed bill which featured the considerably low tax rate on betting revenue amounting to 8.5 percent, lawmakers could not introduce it for voting before 20th June. One of the most concerning thoughts at the moment is related to the neighboring states of New York which are already working towards achieving their goals with full throttle.
New York Could Surpass Nevada in Sports Betting Revenue
Pennsylvania is currently preparing for a potential nod, even though the proposed taxes on its sports betting revenue might end up crippling the sector. According to a recently issued report by GamblingCompliance, it becomes clear that the potential sports wagering field of New York State could bring up to $700 million in annual gross gaming revenue which is already a considerable amount of money.
For reference, over the span of 2017 Nevada managed to generate some $252 million and achieved a new record in its sports gambling operation. One of the factors which could affect this figure is the tax rates in the two states which are applied to the sports wagering sector. New York has proposed that to be 8.5 percent on the gaming revenue of every sports betting provider, whereas Nevada operates with a 6.5-percent tax in the field.
Players are more than excited to give the gaming offering a try in their home state which is why the attraction towards sports betting is expected to be considerable. The states of New Jersey and Pennsylvania are also projected to perform better than Nevada over the span of the following five years. Those two states which have always been fervent supporters of sports betting legalization are expected to bring up to $300 million in revenue each.
For the time being, however, the state of New York would have to wait until the very beginning of 2019 when the proposed bills will have the chance to be looked through. In general, the US sports betting market is projected to reach between $3.1 billion and $5.2 billion in annual revenue by 2023, effectively making it the biggest one on a global scale.