The Current State of Sports Betting in Illinois Compared to New York, Four Years Later
The Current State of Sports Betting in Illinois Compared to New York, Four Years Later
Four years have passed since the legalization of sports betting in Illinois and New York, and it is interesting to compare the current state of affairs in both states. While both states have embraced sports betting, there are notable differences in their approaches and the progress made in the industry.
In Illinois, sports betting was legalized in 2019, following a landmark Supreme Court decision that allowed states to regulate and tax sports betting. The state quickly moved to establish a regulatory framework and issue licenses to operators. Today, Illinois boasts a thriving sports betting market with numerous retail sportsbooks and online platforms available to residents.
One of the key factors contributing to the success of sports betting in Illinois is the accessibility of online platforms. The state allows for remote registration, meaning that bettors can sign up and place bets from the comfort of their own homes. This has significantly expanded the reach of sports betting in the state and attracted a larger customer base.
In contrast, New York took a more cautious approach to sports betting. While the state legalized sports betting in 2019, it initially limited operations to four upstate casinos. This restricted access for many residents, particularly those living in New York City, where no casinos were located. It wasn’t until 2021 that online sports betting was finally approved in New York, allowing for greater convenience and accessibility.
However, even with the recent expansion of online sports betting in New York, there are still limitations. The state has chosen to implement a competitive bidding process for selecting online sportsbook operators, which has caused delays in launching the platforms. As a result, New York lags behind Illinois in terms of the number of online options available to bettors.
Another significant difference between the two states is the tax structure. In Illinois, sports betting is subject to a relatively high tax rate of 15% on gross gaming revenue. This has led to concerns that the tax burden may discourage operators and limit the potential growth of the industry. In contrast, New York has opted for a more competitive tax rate of 12%, which may attract more operators and stimulate market growth.
Furthermore, Illinois has embraced mobile sports betting more enthusiastically than New York. The state allows for in-game betting, which enables bettors to place wagers on live events as they unfold. This feature has proven to be popular among sports enthusiasts and has contributed to the overall success of the industry in Illinois.
In terms of revenue generated, Illinois has seen significant growth in its sports betting market. In 2020, the state recorded over $1.9 billion in total sports betting handle, with a substantial portion coming from online platforms. New York, on the other hand, has yet to release official figures for its sports betting revenue, as online platforms were only recently launched. However, experts predict that the market potential in New York is immense, given its large population and avid sports fan base.
In conclusion, while both Illinois and New York have embraced sports betting, there are notable differences in their approaches and progress made in the industry. Illinois has taken a more proactive stance, with a greater number of online platforms and a more accessible regulatory framework. New York, although slower to adopt online sports betting, holds great potential due to its large population and passionate sports culture. As the industry continues to evolve, it will be interesting to see how these two states shape the future of sports betting in the United States.