New York bill takes inspiration from Florida’s “hub and spoke” model

New York mobile sports betting could be widened to enable the state’s racetracks and sporting arenas to earn revenue as affiliates to sportsbooks, under new legislation tabled in the New York State Senate. Senator Joseph Addabbo, chairman of the Committee on Racing, Gaming, and Wagering, and a long-time betting advocate, introduced Senate Bill S7536 on November 19. The proposed legislation would allow New York thoroughbred and harness racetracks to serve as hosts for the Empire State’s nine approved mobile sports betting operators. It would also allow off-track betting (OTB) parlours and professional sports arenas and stadia to serve as affiliates for mobile operators, while Resorts World International, which operates video lottery terminals (VLTs) at the Aqueduct Racetrack in Queens, could potentially install betting kiosks. Despite the inclusion of wording allowing Resorts World to operate betting, the bill does not include MGM Resorts International, which operates the Yonkers Raceway and the Empire City Casino. “As the law is written, a wagerer would not be able to place a fixed odds bet through a mobile sport wagering operator on a horse race,” the bill explained. “This legislation would enable mobile sports wagering providers to offer that opportunity, should they so choose, but only if they enter into an agreement with the horse racing content provider. “Additionally, this legislation would create additional opportunities for affiliated organizations to offer opportunities to participate in this gaming activity. “These changes are expected to result in billions of dollars of tax revenue for the State of New York,” the bill adds. As part of the wording, any affiliate agreement between an OTB or sports arena would first be required to be provided to the New York State Gaming Commission (NYSGC) before it can be approved. The bill would also see the amendment of section 1367 of New York’s Racing, Pari-Mutuel Wagering and Breeding Law and its definition of “prohibited sports event” to ban mobile sports betting on horseracing with the exception of where an agreement is in place. The legislation is similar in make-up to that currently in force in Florida as part of the Sunshine State’s compact with the Seminole Tribe, in that it operates on a “hub and spoke” basis. The compact bypasses both federal and state law, which both deem sports betting in Florida illegal, however it has repeatedly come in for criticism and is currently the subject of high profile legal hearings into its compatibility with the Indian Gaming Regulatory Act (IGRA). The NYSGC approved the first sports betting licenses earlier this month, endorsing two so-called mega-bids containing some of the industry’s biggest operators. The first bid endorsed by the regulator will see US market leader FanDuel serve as the primary applicant, alongside Bally Bet, BetMGM, and DraftKings. The second successful bid came in from primary applicant Kambi and includes Rush Street Interactive, Caesars, WynnBet, and PointsBet. These operators will face one of the US’ highest taxation rates for sports betting, with 51% levied on all GGR generated.