Once New York legalizes online casinos, some residents will be more excited than Knicks fans celebrating in the streets after a playoff victory. But regulated online casinos will also bring a new wave of gambling advertisements and marketing that could become nauseating.
The two biggest positives to come from regulated NY online casinos are a wider selection of gaming options for bettors, and more tax revenue for the state. But they will also bring some drawbacks.
The biggest one being an uptick in problem gambling, which is why it’s crucial for the New York State Gaming Commission (NYSGC) to shore up its responsible gaming resources before online casinos in NY launch.
Another setback that pales in comparison to problem gambling risks, but is still worth noting is the influx of online casino ads New Yorkers will undoubtedly have to deal with once legislation is passed.
NY 0nline casino ads will be everywhere
If you’re on social media, surely you’ve scrolled past many NY sports betting ads on your timeline. Same with watching TV and listening to a podcast or radio. You even see sportsbook marketing billboards on the New York interstates.
If you’re overwhelmed by how constant sportsbook ads are, just wait until New York gets online casino gaming. Because online casinos are far more profitable than sportsbooks, that allows for more money to be spent on marketing campaigns.
For example, let’s see how New Jersey’s online casino revenue stacked up with sports betting figures from July:
- Online casino revenue: $155,165,055
- Sports betting revenue: $61,013,433
A similar trend is expected in New York when mobile casinos are legalized. With a new revenue stream, gaming operators are likely to spend on advertising again.
Operators looking for cash to put toward marketing
Earlier this year, executives from DraftKings Sportsbook NY and FanDuel Sportsbook NY spoke at a Committee on Racing, Gaming and Wagering hearing. They expressed concerns over the Empire State’s 51% sportsbook revenue tax rate, saying it leaves no leftover cash to spend on marketing campaigns.
Because of this, DraftKings CEO Jason Robins told lawmakers that “meaningful” partnerships with sports teams and stadiums would end. Robins explained that advertising investments aren’t worth it in the NY sports betting market because of the punitive tax rate.
When NY online casinos receive passage, sportsbook revenue numbers will go through the roof. Gaming executives will remain displeased with the high sports betting tax, but they’ll be glad to get online casino cash to fund marketing efforts.
Sports betting is big in NY, but online casinos will be bigger
New York is the biggest sports betting market in the country. In January, the Empire State set a nationwide record in handle at nearly $1.79 billion. Handle is the amount of money wagered by bettors.
Since mobile sportsbook launched in January 2022, bettors have collectively laid down over $26 billion in wagers. In terms of revenue, operators have raked in more than $2.3 billion in revenue, leading to over $1.1 billion in state tax revenue.
Earlier this year, Howard Glaser, head of government affairs and legislative counsel for Light & Wonder, said he expected New York to become “the largest iGaming market in the world.” Some experts believe NY online casinos could help generated up to $4 billion in annual revenue.
Mobile sports betting is wildly popular in New York, and it keeps getting bigger. Once online casinos are introduced, the sports betting figures will be be blown out of the water.