New York has approval for five mobile sportsbooks to launch as soon as Saturday. New Jersey stands to lose a substantial portion of its sportsbook customers and sportsbook revenue.

  • The launch of New York’s mobile sportsbooks will have far-reaching consequences – especially in New Jersey, where an estimated 25% of online sportsbook users reside in New York.

ALBANY, N.Y. – New York’s long-awaited mobile sportsbook launch could be mere days away after the New York State Gaming Commission approved four sports betting platforms to begin operating in NY as soon as Saturday.

According to an announcement made by the Gaming Commission on Thursday, the sports betting operators that received approval include Caesars Sportsbook, DraftKings, FanDuel, and Rush Street Interactive.

The announcement states that the entities selected were chosen because they “have satisfied all statutory and regulatory requirements necessary to accept and process mobile sports wagering activity,” and therefore “have been approved to commence operations with launch, effective no earlier than Saturday, January 8, 2022, at 9 a.m. Eastern Standard Time.”

The announcement goes on to say: “After that effective date, each licensee will determine when to accept wagers, based upon its business capabilities and readiness.”

Five other operators that have received conditional licensing have yet to satisfy the “statutory and regulatory requirements necessary to launch” and will be approved for launch once they meet all requirements.

These operators include Bally Bet, BetMGM, PointsBet, Resorts World, and WynnBET.

What Does New York’s Impending Launch Mean For New Jersey?

At launch, New York – the fourth largest state by population in the United States – will become the largest state to host a full-service (both mobile and retail) legal sports betting industry. As a result, New York is projected to become one of the single largest sports betting markets in the United States, virtually overnight.

While the launch of mobile sportsbooks is a huge win for sports betting in New York, the biggest loser in the launch of New York’s mobile sportsbooks is undoubtedly New Jersey.

As the industry stands prior to New York’s launch, New Jersey’s sports betting market is the largest in the United States by a fair margin. In each of the last three months with available data (September – November 2021), New Jersey posted a monthly sports betting handle of over $1 billion – over $250 million more than the monthly handle figures of the next strongest market in the United States, Pennsylvania.

While New Jersey has enjoyed an unprecedented streak of sports betting success, it seems that this run is about to come to an end. New Jersey may lose a substantial portion of its sports betting customers. This is because of how sports betting laws are structured – to legally use most state-regulated sportsbooks, the user does not have to be a resident of the state but be merely physically located within the state’s borders when the user tries to access the sportsbook.

As a result, residents of states like New York, which do not host a mobile sports betting industry, flock across the border to states that do offer mobile sportsbooks – like New Jersey – to place their bets.

With such close proximity to New York City, the impact the loss of these customers will have on New Jersey’s sportsbooks cannot be overstated. Sportsbook officials have acknowledged this phenomenon, though they have been careful not to over-emphasize the point to avoid potential legislation preventing out-of-state bettors on state-regulated sportsbooks.

“Looking at that geo-compiled data and seeing where wagers are coming from – those border towns – they absolutely have an influx,” said Patrick Eichner, communications director for PointsBet. “You have so many New York Giants and Jets fans living in Manhattan, coming to our side of the water over to New Jersey on a Sunday morning and getting their wagers in prior to NFL Sunday kickoff.”

While not all sportsbooks have been as forthright with this information as Eichner and PointsBet have, FanDuel has previously stated that 25% of its New Jersey user base are New York residents.

Some estimates put the percentage even higher.

New Jersey can be looking at a monthly tax loss of several million dollars and the loss in customers may also be enough to drop New Jersey several ranks down from the status of the most lucrative sports betting market in the United States.

While other states will certainly lose business from New York’s mobile sportsbook launch, none will be affected to the extent of New Jersey. And while this is all bad news for New Jersey, it is fantastic news for New York, which is now in the driver’s seat to become the single most lucrative sports betting industry in the United States.

Advertising Disclosure

In order to provide you with the best independent sports betting news and content may receive a commission from partners when you make a purchase through a link on our site.

News tags: | | | | | | | | | | | | | | | |