New York Online Betting May Have to Wait Longer as Daily Fantasy Sports Get in the Hot Waters

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Last week, a mid-level appeals court said that the New York legislature overstepped its authority in 2016 when Daily Fantasy Sports, a way of betting that FanDuel and DraftKings are offering, was declared as a game of skill and not a game of chance. This meant that they declared that this is legal under the state’s constitution.

According to the appeals court, the legislature shouldn’t have just declared it right away. This should have undergone a legislative process wherein the voters of the state will have to be involved.

Now, many believe that the push for online sports betting will be affected by this. As what’s already known, New York is still only the home to in-person betting. When it signed betting into law last year, mobile or online wagering was left behind. Only upstate casinos and tribal casinos are only allowed to accept bets from the New Yorkers.

This is despite the known fact that the majority of the betting handle that states with legal betting have made is from the online sector.

Take for example how New Jersey is doing. In January 2020 alone, the state was able to take over 500 million US dollars of bets and over 400 million US dollars or around 87 percent of these bets are made online.

New York, on the other hand, only made a total of 7 million US dollars of revenue since it launched until the end of last year. This is definitely far from what New Jersey and other states like Pennsylvania are making from betting through land-based and online casinos.

Many New Yorkers would rather hop on a 20-minute train ride to New Jersey with their mobile devices and place their bets there instead of driving upstate for two hours. Others would still place their bets on offshore-based casinos. This is still legal as there is no federal law that prohibits Americans from doing this. 

Many locals would still wager on offshore online casinos because of convenience and the many bonuses that these online bookies offer. You may check a Betfair bonus review that was created by EfirBet so that you have an idea of why these bonuses matter to many punters. 

With neighboring states and offshore online casinos still getting customers from New York, this state is surely missing out on revenues. Senator Joseph Addabbo Jr. sees this as an advantage to push for online betting in the state. 

New York is currently facing a 6 billion US dollar budget deficit and the state definitely needs more funds. “We do need the revenue. You do not cut yourself out of a $6 billion deficit,” said Senator Addabbo.

He’s also hopeful that more discussions with the advisers of Governor Andrew Cuomo would help online betting in New York finally realized. 

However, the recent development that happened with the state’s Daily Fantasy Sports industry may either have a negative or positive effect on this. 

Addabbo was quick to defend and said that the ruling of Daily Fantasy Sports should have no bearing on the push for legal internet betting. He said that these two are apples and oranges when it comes to the legal issues both are faced with. 

What Addabbo believes is that placing computer services within the facilities of licensed betting casinos that will accept online votes won’t have any constitutional objections. He said that the 2013 gambling bill that is blocking the operations of online casinos and bookies is focused on something else. 

He said in disagreement, “It was never to limit the type of betting. It was to limit the siting (of casinos) because we didn’t want to saturate the state with brick-and-mortar casinos.”

Meanwhile, other attorneys are saying that this could actually help online betting be pushed forward. However, it may take longer to have it realized. Attorneys are saying that while the ruling over Daily Fantasy Sports will be appealed, lawmakers may be smart to start the process of amending the constitution. This is to change the law that prohibits both Daily Fantasy Sports and online sports betting in the state. 

This has always been at the back of the minds of the supporters of online betting in New York. However, amending the constitution may take at least 2 years and this is probably why Senator Addabbo doesn’t really talk about it. 

Addabbo is more hopeful that Cuomo will eventually take online betting into an account same way as he did with paid family leaves and legalizing medical cannabis in the state of New York. 


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