Regulation is a significant part of the gambling industry. Gamers actively track new developments that can change requirements for online crypto gambling casinos overnight. New York is a notable jurisdiction in all aspects of financial regulation. The decision by New York Governor to unveil a proposal to legalize online gambling is newsworthy.
Crypto gambling has undergone remarkable growth over the past few years. A look at the best crypto games in platforms like BC Game shows the dynamism in this industry. Classics like Blackjack and Bitcoin Crash still retain popularity. New games are also challenging for a niche in this vibrant market.
Therefore, news of regulation for online and Bitcoin gambling games elicits cautious optimism. There is always the likelihood of overregulation. Such punitive regulations stifle the growth of emerging sectors. Similarly, positive regulations can allow the industry to thrive.
New York Governor Cuomo’s proposal:
Governor Cuomo outlined the proposal on Jan 11 as part of his State of the State address. The key measure is the authorization of mobile sports wagering.
Under his proposal, the New York State Gaming Commission will ask for proposals to select and license sports operators to offer mobile sports wagering in the state.
The measures mandate that operators and platforms must have a partnership with an existing licensed commercial casino. New York’s gaming commission will also require these sports betting operators to include safeguards against abuses and addiction.
Cuomo wants this proposal to make New York the dominant sports wagering market in the USA. The timing makes sense because the state is currently facing a historic budget deficit due to Covid-19. It could be a thinly-veiled attempt to raise more revenue.
The legalization of online sports betting will net millions of dollars for the state. Sports wagering remains a vibrant market with immense potential from the tax standpoint. This proposal comes after the 2018 Supreme Court case Murphy v. NCAA. The case overturned a federal law that prohibited states from authorizing sports wagering. Fourteen states have already legalized online gambling, and New York is joining the list.
Cuomo sees this move as a chance to stop New Yorkers from spending millions in New Jersey wagering. New York is also considering legalizing marijuana. The city is the largest metropolitan area in the United States. This proposal could stand to gain up to $300 million in revenue. The Coronavirus Pandemic has ravaged local economies, and increasing such alternative sources of taxes is useful.
The Significance of This Proposal
Moments after the announcement, Roundhill Sports Betting & Gaming ETF, the largest sports betting exchange-traded fund, spiked more than four per cent. Other companies like DraftKings were also up. DraftKings is a daily fantasy sports contest and sports betting operator in the United States. Such companies can benefit from the legislative shift.
Mobile betting is a popular form of online gaming. The convenience of sports betting on mobile makes it simple and accessible for many. America has exciting sports leagues that give ordinary people enough fodder to wager.
Gambling has always been popular, even in places that restrict the activity. This proposal is simply an acknowledgement of reality. Accordingly, legalization is long overdue. The Coronavirus Pandemic may have ultimately made officials see the light.
Other states are likely to follow New York’s lead. In a large state like Florida, legalizing mobile betting would be a vital development.
The Path Forward
It is unlikely that the incoming Biden administration will roll back such gains at the federal level. The need for federal legislation diminishes as more states make their policies. It will be interesting to see whether the Department of Justice will continue to implement the Wire Act. This decades-old legislation aimed to thwart organized crime.
Generally, the country seems to be coming around. Nevada has long been the gambling capital in the United States. The legalization of mobile betting in more states is shifting the tide. New Jersey, Pennsylvania, and Michigan are the current leaders from a revenue standpoint. After legalization, New York could shoot to the top. The State’s sheer population is a huge asset. Sports betting and prediction markets could be legal in most states in a few years.
Other countries like Canada may also look at New York’s move favourably. On issues like Marijuana legalization, there is a domino effect to legalization. New York is an SEC country and an influential jurisdiction globally.
The usual warnings on responsible betting will be a fixture of the legalization. Additionally, the registration requirements help to address money laundering and KYC concerns.
To Wrap It Up
New York is a leader in many financial developments. This proposal raises the optimism of everyone in the online gambling business, including at BC Game. The industry had a surge during the lockdown period when most people were at home.
Sports betting now takes online gaming to another level. American operators will have to adjust accordingly to prepare for the windfall. There is an excellent room for growth in such a large market. It will be interesting to follow subsequent developments in other states.