The launch of online sports betting in New York was met with a dizzying response from operators and customers alike. The opening week of mobile wagering has been as exciting as expected.
Caesars, as with other major operators in the game, have long-awaited the opportunity to take on the New York market for sports betting. With a tantalizing welcome bonus on offer from Caesars, it was clear from the outset that these operators mean business. Naturally, there is simply no place like New York when it comes to a host of different reasons – sports being one of those very aspects. The affinity for sports by residents, coupled with a wide variety of teams, means the market for sports betting might be unparalleled in the near future.
Noteworthy points from the opening weekend
There were certainly a number of highlights that must be mentioned after online betting commenced in the Empire State. Caesars, with a mammoth $3,000 bonus and some change, was hoping to get in on the action and take a large slice of the pie – so to speak. However, the Caesars app went down for about three hours on Saturday as many were left unable to place wagers. There is no doubt that such issues are bound to happen from time to time. But, this has certainly meant that Caesars missed an opportunity to solidify itself as the leading operator in the state. We can only speculate that the gambling provider will be looking to put this event in its rear view mirror in the coming weeks. This will be especially important as a number of prominent operators – such as BetMGM and PointsBet – are close to entering the market.
Interestingly, there were a number of markets that weren’t on offer from online platforms. Yes, betting on college sports is not allowed and this was factored in prior to the opening weekend. The omission of certain sports, cricket for instance, came as somewhat of a surprise. Plus, a number of bet types that are found on betting sites in other states, seem to be missing. It may be that operators will expand their current offering once the dust settles.
A great relief for all was the fact that the overall pricing on odds for sports markets seem to be in line with that in neighboring states. Many felt that odds would be less favorable for those in New York based on the hefty tax rate employed by lawmakers. This doesn’t seem to be the case and bodes well for long term adoption by residents.
New York set to become a powerhouse for regulated betting
New York hopes to increase tax revenue off of regulated online sports betting. Up until now, in-person betting has only culminated in around $3.7 million in taxes for the state. It’s a meager total if one considers the fact that in-person betting has been in effect for close to three years. The fact that the latest online sports betting tax rate in New York is set at 51% means that this amount will be eclipsed before long.
It’ll be interesting to see how sportsbooks manage the high tax burden as it is set to eat into profits to a large extent. It will be logical to assume that a number of promotions – which have been offered in an effort to attract customers – will soon be scaled back significantly. As New York continues to adapt to the prospects of what online sports betting will bring, we’ll be sure to keep you in the loop along the way!
