N.Y. Regulators Draft Rules for Sports Betting

New York state’s commercial and tribal casinos could be making book by the end of April, but only on wagers approved by the state and only from bettors physically present at their properties, such as Resorts World Catskills (l.). That means no online or mobile phone betting, at least for now, and no slice of the action for racinos, racetracks and OTBs.

N.Y. Regulators Draft Rules for Sports Betting

New York’s casinos could begin taking bets on sporting events this spring after the state Gaming Commission gave preliminary approval last week to a regulatory framework that does not provide for wagers on computers or mobile phones.

Instead, the rules as currently drafted restrict the market to bets made in person at the four commercial casinos𑁋Rivers Casino & Resort in Schenectady, Resorts World Catskills Casino Resort in Monticello, Tioga Downs Casino Resort in Nichols and del Lago Resort & Casino in Waterloo𑁋which came into existence only after the state Constitution was amended in 2013 to allow them and where sports betting was included in follow-up legislation that codified them the same year with the requirement that bettors be “physically present”.

On this basis, the opinion of Gov. Andrew Cuomo’s administration is that the Constitution likely would have to be amended again to permit any further expansion𑁋effectively cutting out the massive New York City metro market and also blocking the state’s racinos, racetracks and OTBs from participating.

The exception would be Indian-owned casinos, which may offer any gaming available elsewhere in the state.

“The intention of these rules is to provide a solid regulatory structure that would enable the four facilities to get running as soon as practicable with the concept that novel or unique concepts and ideas can be revisited at a future date,” Ron Ochrym, the commission’s acting executive director, said.

Or so things stand currently as the regulations enter a 60-day public comment period during which changes may be considered.

State Sen. Joseph Addabbo, an advocate of remote wagering who has introduced a bill to allow it, is seeking legal opinions to counter what he calls the governor’s “interpretation”. He also is sponsoring a second bill that would start the process of amending the Constitution, a two-year process at best that requires the assent of two successive legislatures and approval by the voters in a referendum.

“With the issue of online sports betting it’s not a question of if in our state, but when,” said the lawmaker, who chairs the Senate’s Racing, Gaming and Wagering Committee. “You don’t do sports betting without doing online sports betting.”

Assemblyman Clyde Vanel, meanwhile, has introduced a bill to create a legislative task force to study and make recommendations for regulating online betting.

The four casinos will submit applications for accepting sports wagers once the new rules are finalized, including what types of wagers they want and what sports they would apply to. It will be up to the Gaming Commission to approve the specific types of bets each casino can accept. Wagering on professional sports and most college sports would be permitted, though not on any collegiate sporting events that take place in New York or feature a New York-based team.

The operations will be taxed at 10 percent of gross revenue, as spelled out in the 2013 law.

“We are happy that the regulations are finally moving forward,” said del Lago spokesman Steve Greenberg said. “As soon as they are finalized, del Lago Resort & Casino will be ready to go. Our customers want this form of gaming and we’re excited to be able to offer it to them.”

All four casinos are geared up for a running start. Tioga Downs Casino Resort has partnered with FanDuel Sportsbook, del Lago with DraftKings Sportsbook, Rivers with Kambi and Resorts World with Bet365.

The Oneida Indian Nation, the dominant player in central New York with three casinos, has concluded an agreement with Caesars Entertainment to run the sports book at its flagship Turning Stone Resort Casino in Verona. The Seneca Nation, with casinos in Buffalo, Niagara Falls and Salamanca, is expected to enter the fray as well.