Daily Fantasy Sports Expanding Offerings in New York?
New York Sports Betting Expansion: Proposal to Raise Age Limit
A New York lawmaker is looking to expand the daily fantasy sports market, but there’s a catch.
State Sen. Joe Addabbo (D-Queens), chairman of the Racing, Gaming and Wagering Committee, is proposing charging a $5 million licensing fee to new operators and a renewal fee of 1% on gross revenue every five years. Addabbo estimates this New York sports betting expansion bill would generate $150 million in new revenue for operators.
“We can do so much better,” Addabbo said via the New York Post.
The caveat, though, is that Addabbo’s bill would raise the legal playing age from 18 to 21.
Competition is fierce for daily fantasy sports is New York, with several different operators holding temporary permits for gaming: DraftKings, FanDuel, Yahoo, Fantasy Draft, RUMBL, Fanamana, Data Force, RealTime Fantasy Sports, For Players by Players, Vauntek, Sports Hub Technologies, MastersFantasyLeagues.com, Boom Fantasy, and Fulltime Fantasy Sports.
Noticeably absent are four of the market’s biggest operators in Betr, Underdog, Sleeper and Popular Fantasy Prize Picks.
Addabbo’s bill would expand offerings to include new contests such as Pick ‘Em and peer-to-peer challenges. Current regulations restrict what games players can compete in.
Here’s what else we know.
Empire State an Industry Leader
Interest in competitive gaming is high in New York. The state is already the biggest market for online sports gambling, having generated a $1.78 billion handle for February.
That ranked first in the U.S., beating out the likes of New Jersey ($1.08 billion), Nevada ($711 million), Ohio ($672 million), Pennsylvania ($661 million) and Virginia ($545 million).
April is shaping up to be another prosperous month for New York, with the NBA and NHL playoffs heating up. Both the Rangers and Knicks look poised to make deep postseason runs, which should only ratchet up the excitement around both teams. The Major League Baseball season, of course, is also in full swing.
More than a half-dozen operators have gone live in New York since the state legalized online sports betting in January 2022. They include industry leaders DraftKings and FanDuel, as well as Caesars, BetMGM and Fanatics Sportsbook.
Twenty-nine other U.S. states — plus the District of Columbia — now offer gambling online, but none are on par with New York in terms of betting handle or revenue.
Concerns About Proposal Linger
Theoretically, the opportunity is there for New York to cash in on daily fantasy sports expansion. Not everyone, however, is enthralled by the prospect of New York sports betting expansion.
Skeptics argue that this proposal could feed addictive behaviors such as problem gambling.
“We’re adding casinos. We have sports betting,” state Conservative Party Chairman Gerard Kassar said via the New York Post. “Fantasy sports have a potential to make things worse — it adds to compulsiveness.”
The Fantasy Sports & Gaming Association reported that football is unsurprisingly the most popular sport for gamers, ahead of basketball, baseball, hockey, and soccer.
Stay tuned for more updates on New York sports betting expansion.
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