While Nevada may reign as the casino capital, when it comes to sports betting, New York stands out. The Empire State, which legalized sports betting a decade ago and fully launched online wagering in 2022, continues to dominate the U.S. market in sports betting revenue.
According to a report by the American Gaming Association, New York’s sports betting revenue reached nearly $2 billion in 2023 and topped second-place New Jersey by nearly $1 billion.
In the most recent report, the Empire State’s sportsbooks brought in a record $70.9 million of weekly gross revenue, breaking the previous mark of $67.2 million set in January. The milestone was highlighted by DraftKings setting an individual operator profits mark of $36.5 million.
But now one state lawmaker wants more, and apps like DraftKings will benefit.
What the Proposed Bill Calls For
A proposed bill in the Senate aims to grant licenses to additional fantasy sports operators under the oversight of the New York State Gaming Commission. Senator Joe Addabbo, the bill’s sponsor, anticipates that these changes could generate between $150 million and $200 million in new revenue for New York over the next decade.
“By codifying the language, and changing the makeup of the games and the amount of platform providers hopefully we can increase the amount of revenue and make it a better product,” Addabbo told Legal Sports Report.
The additional revenue that fantasy expansion generates would go toward education, similar to the majority of tax revenue from mobile sports betting. The legislation does not include funds for problem gambling services.
Age To Play Would Increase From 18 to 21
But there is a catch. If the bill becomes a law, it would also raise the minimum age for participation from 18 to 21.
Addabbo, who chairs the Senate Racing, Gaming, and Wagering Committee, emphasized that the proposed legislation would create consistency in age requirements between fantasy sports and mobile sports betting.
“We don’t want fantasy sports to be part of somebody’s lunch money,” Addabbo said. “That’s not the demographics that we want to incorporate into fantasy sports.”
Additionally, peer-to-peer pick’em fantasy sports contests would be allowed.
Fantasy Expansion Already Getting Support in New York
According to a recent poll by the Fantasy Advocates for New York Sports, 75% of Democrats and 76% of Republicans back the idea of expanding the state’s daily fantasy sports laws. Additionally, the turnout of sports fans and stars at the New York State Capitol, backing Addabbo’s plan to update the state’s fantasy sports laws during his announcement, indicates increasing support.
“What’s most special is one not just seizing the opportunity but also making the game safer,” former New York Giant David Tyree said. “The big leap to 21, making it a unique safe experience for people to make the best decisions.”
Former New York Yankees star Tino Martinez argued that if passed, the bill will also enhance the fantasy experience for New Yorkers like him in the process.
“It’s a great way for our family to come together and it’s very enjoyable,” he said. “It gets me involved in more of the players that I don’t know are out there. I get to learn them and talk to my kids about it, to my mom about it.”
Market Saturation Not a Concern in New York
Addabbo dismisses concerns that expanding offerings, including betting options from horse racing, casinos, and sports in addition to daily fantasy, could saturate the market.
“This is a parallel track, fantasy sports is separate from mobile sports betting. I don’t see any interference at all. It only enhances it, actually,” he said.
The New York State Gaming Commission has granted ‘temporary permits’ to several operators, enabling them to offer fantasy sports games in the state. These operators include DraftKings, FanDuel, Yahoo, Fantasy Draft, RUMBL, Fanamana, Data Force, RealTime Fantasy Sports, For Players by Players, Vauntek, Sports Hub Technologies, MastersFantasyLeagues.com, Boom Fantasy, and Fulltime Fantasy Sports.
However, four major operators—Popular Fantasy Prize Picks, Underdog, Sleeper, and Betr—are currently excluded from the state’s fantasy sports law. The new bill aims to address this exclusion.
We’ll track this bill as it moves through the approval process, and update you when a decision is made.
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