NY online sportsbook advocates welcomed Governor Andrew Cuomo’s support for their cause. However, they doubt that the state Lottery can effectively run online sports betting. They said that a monopoly is bad for the market.
Also, lawmakers are pushing for more than one online sportsbook operator in New York. Thus, they don’t support the governor’s suggestion of having a single operator under the State Lottery supervision.
According to sports betting software solution, a monopoly would lower profits than a competitive market. It seems like Cuomo wasn’t aware of this because he is supporting online sports betting to generate more income for the state.
NY Online Sportsbook Advocates Wants a Free Market
In his state budget proposal, Cuomo said that the question was not whether there would be mobile sports betting. The question is how to make a profit from it. According to a political forum, the governor estimated that mobile sports betting could earn $500 million each year.
The added revenue from online betting can reduce the $15 billion budget deficit. Cuomo said that online sports betting is not a money-making scheme for private companies. It should be the state that would earn more from it and doesn’t want to share it with other entities. Thus, he wants the state to become a successful bookie.
Cuomo’s support for sports betting represents a policy change for the governor. In the past, he didn’t want online sports betting because he said it would need a constitutional amendment. In 2019, Cuomo signed the law allowing sports wagering in licensed commercial casinos. Also, it led to sportsbooks operated by the Native American nations in the state.
Supporters of online sports betting in New York said that a competitive market could help maximize revenue. The lottery model would not work in the long run.