New York City is one of the most famous cities in the world. It attracts millions of tourists each year and is known for being a culturally vibrant city with a restless energy and a strong, distinctive identity.
Its home, the state of New York, is one of the most important and powerful states in the United States of America. The state, as a whole, has been used as a model in many different industries and sectors.
One of them is the sports betting industry. Indeed, New York is a pioneer in the Sports Betting industry.
This article will explore how the state of New York came to be a sports betting model for many other American states. A list of four main reasons will be drawn up and included in this article.
However, before diving straight into these reasons, it is important to understand what New York’s own relationship with the sports betting industry has been like. For example, when was betting legalized and how popular is it in this world-renowned state?
New York and the sports betting industry
Sports betting is very popular in the state of New York. This common pastime dates back to the 19th century.
Back then, horse racing and betting were the most beloved forms of betting. They were brought to New York mainly by Irish and English immigrants who share a deep, cultural love for horse racing.
At the time, bettors would place their bets via bookmakers. However, by the end of the 19th century and the beginning of the 20th century, authorities’ attitude towards gambling and betting changed.
Betting soon became illegal which was not a good strategy for the state as organized crime syndicates began to profit from illegal gambling operations. These syndicates were particularly present in major cities like New York and Chicago.
Despite betting becoming illegal, people still gambled and placed bets. They would do so secretly by joining hidden venues, playing in salons or during small gatherings.
During its ban, sports betting still remained a popular pastime in the state of New York.
The ban was finally lifted a decade ago. In 2013, New York agreed on a bill that legalized sports gambling at the state level. By passing a bill in 2013, New York made sports gambling legal exclusively in New York casinos.
However, mobile sports betting was still considered illegal.
Although the bill was passed in 2013, gamblers and bettors still had to wait until 2019 for the first official sportsbook to be released.
That year, the first legal sports bets were placed by a New York lawmaker and chair of the state’s racing and wagering committee.
Mobile sports betting, on the other hand, was finally legalized in January 2022. As of early 2023, there are nine live online sportsbooks available for gamers to choose from.
More live online sportsbooks will likely be released over the next months and/or years.
It is worth noting that, although mobile gaming is legal in the state of New York, any sports betting on collegiate games, gatherings or events taking place in-state is prohibited.
The 4 reasons why other states use New York as a sports betting model
Here are the four reasons why New York is now considered an example of what a successful sports betting adopter is.
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A pioneer
New York was one of the first states to legalize sports betting. The state’s early adoption and successful implementation of sports betting have made it an attractive model for other states to follow.
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A big market
New York has a large population and a thriving sports culture, from baseball to MLS soccer. Many can even bet on NFL futures, such as backing the New York Giants as they try to reassert their dominance within the NFL. Thus, making it an attractive market for sports betting operators. As a result, other states are looking to New York as a model for how to regulate and manage sports betting in a large market.
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Highly qualified and experienced regulators
New York has an experienced regulatory body in the New York State Gaming Commission, which has been overseeing gaming operations in the state for many years. Other states may look to New York for guidance on how to establish their own regulatory frameworks for sports betting.
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A high revenue (especially for the state itself)
New York’s sports betting market has generated significant revenue for the state since its legalization, with more than $1 billion in wagers placed in the first year alone.
For example, at the end of 2022, Governor Hochul announced that the state of New York had collected over $500 million USD in tax revenue from mobile sports betting in less than a year.
These numbers show how profitable the mobile sports betting market has been for the state of New York.
Other states may be interested in using New York’s model as a way to generate additional revenue through legalized sports betting.
These are the four main reasons why New York is now being used as a model and example for other states to follow. Some of the other major U.S states that have not yet legalized sports betting include California, Texas and Florida.
Seeing how New York approaches sports betting might lead these other major states to change their current approach and regulations towards sports betting.
