NYS Gaming Commission Approves of Regulation which Permit Sports Betting at State Casinos

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On February 4, 2019, the New York State Gaming Commission approved a proposed set of regulations, which would allow four New York State casinos to operate, and permit, in-person sports betting. According to one a member of the New York State Gaming Commission, “[t]he proposed regulations seek to protect the integrity of wagering and ensure the sports wagering remains within the scope of activity the legislature authorize.”

Aside from the typical standards for operating sports betting, the proposed regulations layout a framework for how the four New York State casinos are to become licensed and how they can collaborate with various vendors in order to operate sports betting pools.

Notably missing from the proposed regulations is an “integrity fee” or “data fee.” While campaigning for legalized betting in all fifty states, many professional sports leagues, including the NBA, asked state legislators to stipulate that each professional sports league should receive a one percent integrity fee” or “data fee” every time a bet is made on one of its games. Thus, it appears from the proposed regulations that New York State is unwilling to share its proceeds with the various professional sports leagues. Also of note, the proposed regulations did not allow for mobile betting.

Currently the regulations are merely proposed regulations and must survive a 60-day public comment period. Once finalized, New York will become yet another state to allow legalized sports betting since the landmark May 2018 Supreme Court case. It also appears that Andrew Cuomo, New York State Governor, wants legalized sports betting to be a priority in New York State. In his 2019 State of the State address, Cuomo said, “We invested in upstate casinos. Let’s authorize sports betting in the upstate casinos. It’s here. It’s a reality and it will help generate activity in those casinos.”

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