New York Could Launch Mobile Wagering Within Weeks, As Could Louisiana

New York sports betting is set to begin soon.

The same can be said for Louisiana sports betting.

New York Target Before Super Bowl

State Sen. Joseph Addabbo, a New York City Democrat, has said at least twice in recent weeks that he thinks New Yorkers will be able to place mobile sports bets in time for the Super Bowl next month, if not earlier.

“I remain optimistic and believer that New Yorkers will be able to place their first mobile sports bet in January, before the Super Bowl,” he tweeted late last week.

The Super Bowl, usually a heavily wagered event nationwide, is set for Feb. 13 this year at SoFi Stadium in Inglewood, California, south of Los Angeles.

On New Year’s Eve, Addabbo tweeted that he has been “nothing but consistent” regarding his opinion that New Yorkers soon will be able to use their smartphones and computers to wager on live events.

Addabbo is chairman of the Senate Committee on Racing, Gaming and Wagering. This year’s legislative session began Wednesday at the Capitol in Albany and ends June 2.

New York is Largest State with Sports Betting

In November, the New York State Gaming Commission gave the green light to nine online bookmakers to operate mobile sports betting platforms across the state.

When these platforms are turned on, this will be the first time in the nation’s fourth most-populous state that mobile wagering has been legal.

The three most-populous states — California, Texas and Florida — do not have legal sports betting.

In Florida, the Seminole Tribe briefly launched a mobile wagering app, but it has been discontinued in a federal legal dispute.

Nine Online Bookmakers Licensed in New York

In New York, the online bookmakers licensed to operate are Bally’s Corp., BetMGM, DraftKings, FanDuel, Caesars Entertainment, Wynn Resorts, PointsBet Holdings, Rush Street Interactive and Genting’s Resorts World.

These operators are required to partner with a land-based casino. The casinos will receive a $5 million annual hosting fee from the sports betting companies.

Online bookmakers operating in New York will be required to pay a 51% tax for 10 years. That equals New Hampshire’s highest-in-the-nation rate, also at 51%. The tax rate in New Jersey is 13%.

This tax rate in New York is expected to generate $493 million in revenue for the state by 2025, according to Forbes.

Mobile Revenue Could Decline in New Jersey

Once mobile wagering is operational in New York, next-door neighbor New Jersey could see a fallout in its nation-leading monthly sports betting handle. When the final 2021 figures are totaled, New Jersey could top $10 billion in sports bets placed during the year.

More than 90% of New Jersey’s sports betting handle — the amount of money bettors wager on events — comes from mobile devices such as smartphones. A portion of this money is from New Yorkers crossing the state line to place bets.

Addabbo has predicted New York ultimately will “eclipse” New Jersey in sports betting.

Louisiana Set to Launch Mobile Wagering

Louisiana is another state expected to launch mobile sports betting within weeks.

Ronnie Johns, chairman of the Louisiana Gaming Control Board, told Gambling.com legal mobile wagering will be available once Louisiana State Police troopers have vetted the companies applying for a license to operate online platforms. WynnBet Louisiana Sportsbook is escpected to be one of the first to launch.

Following on from that brands established in other states are set to follow suit. PointsBet Sportsbook Louisiana will not be far begind.

That assignment is expected to be wrapped up by the end of January, Johns said.

The state will issue 41 “skins,” the industry term for sports betting websites and accompanying apps.

Each of the state’s 20 licensed casinos will receive two skins that they can use in partnering with national online bookmakers. The Louisiana Lottery Corp. also will receive a skin.

Louisiana’s tax on the net revenue from mobile wagering is 15%.

Texas Bettors Expected to Boost Louisiana’s Mobile Handle

Louisiana is expected to benefit from the lack of legal sports betting in Texas.

It is anticipated that Texans will drive across the state line into Louisiana to use their smartphones in placing sports bets, just as New Yorkers now drive into New Jersey.

Houston, the nation’s fourth-largest city, is less than two hours from Louisiana. Only New York City, Los Angeles and Chicago are more populated than Houston.

Sports betting won’t have a chance of being legalized in Texas until the Legislature next meets in Austin in 2023. If approved there, sports betting would require a public vote, meaning 2025 is the earliest date legal wagering could occur in Texas.