Mobile sports betting in New York State is coming, maybe by next February. NBA owners and arena operators must be pleased.

A press release yesterday from Queens state Sen. Joseph P. Addabbo Jr., Addabbo hopes mobile sports betting begins before next year's Super Bowl, hailed legislation he championed:

With New York State facing a major economic deficit caused by the COVID-19 pandemic and witnessing hundreds of millions of dollars in revenue and educational funding flowing to the New Jersey and illegal sports betting markets, by legalizing mobile sports betting, New York is expected to bring in around $99 million in Fiscal Year 2021-2022. That estimated figure then jumps to approximately $357 million in FY 2022-2023, eventually reaching over $500 million in FY 2025-2026, most of which will fund education in the state.

Mobile sports betting will allow people to place wagers on sporting events through their mobile phones or other internet-connected devices. Thirteen other states and Washington D.C. also have legal mobile sports betting.

That, of course, can create collateral damage for gambling addicts--the Daily News noted that the "budget bill also sets aside $6 million annually for gambling addiction services" (enough?)--but Addabbo argues that New Yorkers are already placing such bets illegally or in New Jersey. 

Helping the NBA

If mobile sports betting starts by February 2022, for the Super Bowl, it will also be valuable for the next NBA regular season--and playoffs.

And that has to help goose the value of--and interest in--franchises like the Brooklyn Nets and New York Knicks, as well as their associated arenas.

(Remember, they were lobbying and, when sports betting nationally was unlocked in 2018, it was seen as boosting franchise value.) In 2018 (I think), one major "fantasy sports" provider offered FanDuel night at Barclays.

What next?

For now, there are questions. As summarized in New York magazine:

According to industry outlets, the plan will be implemented by the New York State Gaming Commission, which will accept bids for proposals for up to two providers to run mobile sports gambling in the state. Because that operator would need to be partnered with one of the state’s commercial or tribal casinos, four frontrunners appear obvious: DraftKings, FanDuel, Bet365, and BetRivers. These operators would then be able to subcontract mobile betting contracts known as “skins” to other providers; according to State Senator Joseph Addabbo Jr., that number could be “eight or 20 skins, but we agreed on no less than four.” Around 50 percent of profits will be shared with the state, and consumer protections similar to those for sports betting at casinos will be in place.

And that means that companies like DraftKings saw their stock prices rise in the wake.

Sporico suggested yesterday that the "limited operator model should generate more long-term revenue for the state of New York, but those gains are likely coming at the consumer’s expense," given that the share going to the state diminishes bonuses to players--and might still leave New Jersey and illegal operations with somewhat better odds.

The article note that the plan "does not include a provision for kiosks at pro sports venues," but it's not ruled out, either, and a bidder, according to one expert, could incorporate such venues in its bid.

So stay tuned.