29TH JAN 2019 | WRITTEN BY: CHRIS SIEROTY
Sports betting is one step closer to becoming a reality for a few commercial and tribal casinos in New York after state gaming regulators approved regulations that could make it possible for wagering to begin after a 60-day public comment period.
The New York State Gaming Commission (NYSGC) voted unanimously on Monday to approve the rules that will apply initially to four upstate commercial casinos and later Native American casinos.
Rob Williams, NYSGC executive director, described the proposal as a “solid regulatory structure” that will get sports betting up and running as soon as possible.
There were no comments or questions from the six commissioners before approving the regulations, which were posted on the NYSGC’s website following the meeting.
The four upstate casinos where sports betting could be launched would be Tioga Downs partnering with FanDuel, del Lago Resort & Casino alongside DraftKings, Rush Street Gaming’s Rivers Casino & Resort in Schenectady, and Resorts World Catskills with partner bet365.
“Rush Street Gaming looks forward to implementing responsible practices for on-premise sports betting at Rivers Casino & Resort,” CEO Greg Carlin said in a statement on Monday. “We’re grateful to Governor [Andrew] Cuomo for making sports betting a priority in 2019 and to the state gaming commission for taking the first steps towards regulating this industry.”
In accordance with state law, in-person sports betting would be accepted only at the casinos and betting will not be offered on mobile phones.
Gaming regulators, and some lawmakers, including Governor Cuomo, a Democrat, have indicated that a state constitutional change is needed to allow mobile sports betting and to expand wagering on professional and collegiate games across the state.
But Democratic state Senator Joseph Addabbo recently told GamblingCompliance that he wants to look into the details of what can be done legislatively to legalize online betting without amending the state’s constitution.
The rules adopted by the gaming commission include a requirement that casinos build sports wagering lounges of a minimum size to accept bets. Betting kiosks would be allowed, but must be located within the lounge or another on-site location as approved by the NYSGC.
Under the proposed rules, the casinos would have to submit a detailed plan, including what types of wagers they want to offer on which sports. It would be up to the commission to approve the specific types of bets each casino can accept.
Monday’s draft rules, which borrow in large part from regulations in place in neighboring New Jersey, also appeared to walk back a potential ban on esports betting.
Language in an earlier draft version of the regulations obtained by Legal Sports Report had included a restriction permitting bets only on sporting events that include “elements of physical skill or exertion.” That provision was not among the 33 pages of proposed rules released on Monday.
Wagering on professional sports and most college sports would be allowed, but no wagers could be placed on any collegiate sporting events that take place in New York or feature a New York-based team.
In other words, bets on St. Johns or Syracuse college basketball games would be prohibited.
Gross revenue from sports betting would be taxed at 10 percent. The tax rate was included in a 2013 casino expansion law that also permitted the new casinos to offer sports betting if federal law change permitted it, as it did when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in May.
Not everyone was pleased with Monday’s vote by the gaming commission.
“While we’re gratified the State Gaming Commission took the first step in authorizing sports betting in New York … we think it’s important our million-plus customers and all Western New York sports fans and communities benefit from sports betting opportunities in their own back yard,” said Henry Wojtaszek, president and CEO of Batavia Downs Gaming and Western Regional Off-Track Betting.
Wojtaszek said sports betting should be allowed at Western Regional Off-Track Betting and at OTBs around the state.
“As currently proposed, a [Buffalo] Bills fan would have to go to a Native American casino or drive 90-minutes to place a bet on the Bills,” he said. “That’s not exactly convenient, and it won’t provide critical tax revenue to local governments.”
Meanwhile, online companies, including DraftKings and FanDuel, have been lobbying Empire State lawmakers to follow their counterparts in New Jersey by authorizing mobile sports wagering.
Last week, FanDuel launched a website urging customers to write to lawmakers and urge them to pass a mobile-betting law.
“It’s time to speak up and bring mobile sports betting to New York,” the company wrote. “Without your help, New York’s sports betting will be limited to the casinos very far away from where many New Yorkers live.”
Chris Sieroty 