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DraftKings Surges as Gov. Cuomo Touts Sports Betting in NY State

DraftKings shares rise as New York Gov. Andrew Cuomo says the state could become the largest sports-wagering market in the U.S.
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DraftKings  (DKNG) - Get DraftKings Inc. Report was rising after New York Governor Andrew Cuomo reportedly expressed support for legalizing online sports betting.

Shares of the Boston digital gambling company were up 6.2% to $50.54. Other stocks in the sector, such as Boyd Gaming  (PENN) - Get Penn National Gaming Inc. Report and Caesars Entertainment  (CZR) - Get Caesars Entertainment Inc. Report, were higher as well.

“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in tax revenue here at home, which will only strengthen our ability to rebuild from the covid-19 crisis,” Cuomo said in a statement published in the New York Daily News.

Last month, Cuomo indicated at a news conference that he would be open to fully legalizing online sports betting in New York.

The betting-news website Action Network reported in December that neighboring New Jersey had emerged as the leader in sports betting. 

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If legislation is passed, New York would become the biggest state with mobile gambling by a significant margin, the website reported.

“At a time when New York faces a historic budget deficit due to the covid-19 pandemic, the current online-sports-wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” Cuomo said, according to Yogonet.

New York State is losing more than $200 million in revenue by not legalizing online sports betting, according to a report by the research firm Eilers & Krejcik. That report was released in February and commissioned by DraftKings and rival sports betting company FanDuel.

The report estimated that New Yorkers bet $837 million on sports in New Jersey. 

Joe Addabbo Jr., a Democrat who is chairman of the New York State Senate committee on racing, wagering and gaming, tried to pass a bill that would legalize mobile sports betting. The proposal last year passed the State Senate 57-5 but never made it to the floor of the State Assembly.

“I’m thankful for the governor moving mobile sports betting in New York closer to crossing the goal line,” Addabbo told Action Network. “I now await the details.”