Penn National Gaming (NASDAQ:PENN), the regional casino company, bought a 36% stake in closely held Barstool Sports for $163 million on Jan. 29 - $135 million in cash and $28 million in nonvoting.

Competing against Draftkings Inc (NASDAQ: DKNG) and Penn National Gaming, Inc (NASDAQ: PENN), Score Media wants its sports betting app accessible to more customers and for it to continue growing. Barstool Sportsbook is Penn’s mobile sports betting app. It is currently live in Pennsylvania and Michigan, and the company rolled out an internet casino offering in Michigan on Feb.

Is Sports Betting Legal In New York?

New York sports betting has taken a turn in the right direction, but there’s still more work to do to catch up with its neighbors.

As of January 2019, New York State offers physical sportsbooks. The closest in-state option to New York City is Resorts World Catskills in Monticello, while most of the rest are located in Upstate New York toward Binghamton, Syracuse, and Albany.

Mobile Sports Betting In New York Update

While the state has yet to legalize online sports betting, it was discussed as part of an emergency revenue-raising strategy in 2020 during the COVID-19 pandemic. Nothing came of the measure, but a new glimmer of hope emerged in January of 2021. However, it came with a catch. New York Governor Andrew Cuomo voiced his intent to support mobile sports betting in the state. The catch? He wants a lottery-run sports betting monopoly.

It remains to be seen what form mobile sports betting could take in The Empire State, but the Governor’s change of stance on the topic certainly bodes well for New York sports betting.

According to State Senator Joseph Addabbo, the senator spearheading the campaign to bring mobile sports betting to New York, there is a possibility that mobile sports betting could become legal. In October 2020, NY Sports Day interviewed Sen. Addabbo about the chances and he seemed positive. It’s likely that Sen. Addabbo will be bringing legislation forward in January 2021 in order to see mobile sports betting added to the New York State budget before an April 1, 2021 deadline.

Addabbo clearly recognizes the importance of mobile betting to the New York economy. New York online sports betting could help plug a multi-billion dollar budget deficit that was exacerbated during 2020. Mobile sports betting could bring in $900 million annually in state revenue.

Governor Cuomo, thus far, has stood in the way of progress on this front, finding any movement on gambling in New York State would require an amendment to the state Constitution. He seems to have changed his tune as of June 2020. The mobile sports betting bill passed the state senate by a vote of 57-5, so at this point, Governor Cuomo’s signature is the final hurdle.

On January 20, 2021, State Senator Addabbo and Assemblyman Gary Pretlow’s bill is making progress. The legislation was voted out of committee, indicating strong support from the Assembly and State Senate. Cuomo still supports the lottery-run model, however, so it remains to be seen how far this bill will progress before New York lawmakers must decide between the two formats.

On January 26, 2021, Spectrum Gaming Group released a study in conjunction with the Ney York Gaming Commission. The study outlined possible reasons for bringing mobile sports betting to the Empire State along with recommendations for adding new casinos to the downstate region.

As the state legislators duke it out with the Governor over sports betting models, operators are wasting no time preparing for New York sports betting. Penn National Gaming signed a deal with Rivers Casino & Resort while Golden Nugget Online Gaming inked with Tioga Downs. Each deal is good for 20 years, pending Empire State sports betting regulation.

Current NY Online Sportsbook App Options

While waiting for mobile sports betting in New York, it is possible to sign up at these online sportsbooks in New York and bet in New Jersey or Pennsylvania.

If you would like to place wagers online or via a sportsbook app, your best choice is to sign-up and deposit while in New York and cross the border into New Jersey or Pennsylvania to place your bets. New users at DraftKings get a 20% deposit bonus up to $1000. This is likely a faster option than going to any of the physical New York sportsbooks which are listed below.

A great option for NY players that are willing to travel to New Jersey to place bets. New users at Sugarhouse sportsbook get 100% up to $250 dollars with a 1x wager requirement. This is a great bonus for players looking for a solid sportsbook with an easy to get bonus.

Download In New York And Bet In New Jersey

Here are all of the mobile sportsbooks that licensed in New Jersey and available to New Yorkers once they are inside of New Jersey state lines:

• DraftKings Sportsbook
• PointsBet
• SugarHouse Sportsbook
• BetMGM Sportsbook
• William Hill
• 888 Sport
• Caesars Sportsbook
• FOX Bet
• Hard Rock Sportsbook
• Golden Nugget Sportsbook
• BetAmerica
• Bet365 NJ
• theScore Bet
• Borgata Sports
• Unibet Sport

Live New York Sportsbook Locations

For the time being, New York sports betting locations are limited to land-based casinos. Legally, New Yorkers cannot yet place a bet online or at an off-track betting (OTB) facility.

Here are all the casino locations currently accepting NY sports bets. We’ve also included whether there’s a New Jersey sportsbook app for those who find themselves in the Garden State.

Top 3 Best Sportsbooks In New York State

DraftKings Sportsbook

There is simply no avoiding the two most successful mobile sportsbook apps, FanDuel and DraftKings. They’re producing successful results in both New Jersey and Pennsylvania that hit too close to home for New York to ignore.

In fact, DraftKings currently operates a sportsbook app in seven of the legal online betting states. Now, success in other states notwithstanding, DraftKings has an affiliation on their side. DraftKings sportsbook app in New Jersey is under the sports betting license of Resorts World.

This is the same Resorts World that operates three casinos in New York. One of their locations is the Resorts World Catskills, and it’s one of the legal sportsbook venues in New York.

Due to DraftKings’s massive customer base, proven track record, and ties to current New York sportsbook operations, they’re at the top of any list of candidates for New York mobile sportsbook app providers.

Plus, the DraftKings app in other states is currently pushing $1,000 worth of new accounts and first deposit incentives, so it can’t come soon enough.

FanDuel Sportsbook

FanDuel has just as strong a chance of gaining access to New York’s mobile sports betting market as its daily fantasy sports (DFS) rival DraftKings. They’re currently operating successful mobile sportsbook apps in five states, with bordering New Jersey and Pennsylvania being two of them.

One of the current physical FanDuel sportsbook locations in New York is at the Tioga Downs Casino Resort. FanDuel provides all sportsbook operations at this venue.

Already having skin in the New York sports betting game should certainly bode well for FanDuel. And the fact that they have overwhelmed their competition right across the border in New Jersey will be a huge factor as well.

FanDuel and DraftKings have a huge sportsbook app presence already established across the country. One or both operate in nearly every state where online betting is legal, and their DFS platforms are the far and wide leaders. They also provide the logistic platform for a number of brick-and-mortar sportsbook facilities, including at a couple of New York sportsbooks.

When FanDuel does launch its sportsbook app, FanDuel will almost certainly pass along the same $500 risk-free first bet opportunity it offers in other states.

Rivers Sportsbook

BetRivers doesn’t have the kind of name recognition as FanDuel and DraftKings. But their mobile app is offered in New Jersey, Pennsylvania, Illinois, Indiana, and Colorado.

So whenever New York decides to allow online sports betting, you can expect the BetRivers app to be one of the choices.

In the meantime, you can head to Schenectady, NY; Philadelphia, PA; or Pittsburgh, PA to experience the Rivers Sportsbook in person. It’s the same odds you’ll find on their highly popular sports betting website. And you can use the odds picker to make your selection ahead of time.

At the Schenectady location, you can bet via 14 self-serve kiosks or six betting windows. They have close to two dozen TVs, luxury seating, and food and drink service.

Not too shabby, but we’re holding out for the online version. In New Jersey, the BetRivers app will double your first deposit up to $250.

The Recent History Of New York State’s Sports Betting Legislation

Brick-And-Mortar Sportsbooks

New York’s legislators approved regulations for sports betting at physical locations in January 2019.

After watching New Jersey’s success, lawmakers realized that revenue was simply walking across the proverbial state line. When Pennsylvania legalized sportsbooks, the problem compounded. The idea that New York would hand over much-needed financial revenue seemed senseless to all residents and sports fans alike.

Nevertheless, it took roughly a year to open the first sportsbook. But in October 2019, folks in Upstate New York could finally place legal sports bets.

Even though New York was the 14th state to permit sports betting, it restricted sportsbook venues to four upstate casinos. They included no provisions in the legislation for mobile betting. Many were scratching their heads at this development.

Online Sportsbooks Apps

While lawmakers saw the success of other states that came before them, they seemed to ignore the numbers. In June 2019, Senator Joseph Addabbo Jr. attempted to amend the sports betting bill to include online wagering.

The bill passed the New York Senate by a 57 to 5 vote. However, Governor Cuomo vetoed the bill. There was overwhelming support for an online amendment to the final sports betting legislation, but Cuomo publicly said he would not approve it.

Betting Apps Sports

To date, there seems to be little progress toward opening up New York to mobile sports bettors. New Jersey specifically showed tremendous promise from each licensed sportsbook app operating in the state. Eighty percent of the betting revenue was generated online.

Why So Much Resistance From The Governor?

The path to legal sports betting in New York was bumpy. Clearly, the process of including mobile sportsbook apps is proving even more difficult. Nearly all the resistance comes from the governor’s office. Most who hope to change his mind are at a loss for any actual reason.

Governor Cuomo’s black eye in a battle with two prominent sportsbook players, FanDuel and DraftKings, may be part of the issue. Cuomo lost that battle to have each of these daily fantasy sports (DFS) companies ruled illegal in his state, and both offer DFS in NYS today.

While there is no direct evidence pointing to any personal animosity, it would seem his resistance to online sports betting is a reality. And some assume it stems from his administration’s legal defeat.

As New York faces extreme financial hardship due to COVID-19 and other factors, it would seem like a time to put petty differences aside. And there is some hope from the final outcome of the New York vs. DFS legal squabble.

The governor ultimately did sign the law in August 2016, which ruled that daily DFS contests are not a form of gambling. There were rumors that Cuomo was going to veto that bill, but he didn’t.

Regardless, since The United States Supreme Court overturned the federal ban on sports betting in 2013, New York’s highest office has displayed reluctance toward welcoming mobile sportsbook operations with open arms. In fact, it’s been essentially a no-go proposition.

In his defense, Cuomo insists that legal mobile sports betting would require amending the New York State Constitution. Despite a collective bipartisan disagreement on that being legal truth, that’s really the only bonafide reason the governor presented.

The governor also floated the idea that he had reservations about everyone being able to bet from their phone. During a radio interview, Cuomo wasn’t pressed on his reasoning behind that substance-lacking excuse.

Problem gambling in his state seemed to be the impetus behind his concerns. However, lawmakers have already visited this problem inside the legislation. The bill to amend the legal sports betting law included 14 points to deal with problem gambling issues.

While lawmakers have apparently tried to dot all their i’s and cross all their t’s, Cuomo still voices resistance to mobile sportsbooks. However, the staff at the New York Treasurer’s Office may be whispering to him that a new wind of change needs to be in the air.

Could Change Be In The Air?

New York was in bad financial straits before the coronavirus pandemic. Now, the state is staring down the face of bankruptcy after COVID-19 has devastated its already bleak monetary outlook.

There isn’t a single state currently allowing legal sports bets that hasn’t benefited financially from the decision. New York lawmakers realized that when they agreed to open physical locations.

Nevertheless, there is no disputing the massive amount of betting handle that is wagered using mobile devices. Reports surfaced last year that Senator Addabbo was pushing his mobile app legislation, and 84 lawmakers supported the idea.

Can New Yorkers Bet Using New Jersey Sports Betting Apps?

New Jersey is one of the most liberal states when it comes to online gambling. They currently offer online sportsbooks, online casinos, and poker sites, which covers all the bases.

On the online sports betting front, New Jersey has at least 17 different sportsbook options. The state also does not require you to register in-person, which means you can download the app and sign up for an account from New York State (or anywhere else in the country).

However, you do need to be physically located in New Jersey to place a bet through the online sportsbooks.

Physical New York Sportsbooks Are Online In New Jersey

As painful as that fact may be, all the top sportsbooks in New York State are available to bettors in the Garden State – and they don’t need to leave home to wager. But there’s good news.

Penn Gaming Online Betting

If you’re willing to enter New Jersey to bet, you can participate in the welcome bonuses, place bets, and withdraw your winnings despite being an NYS resident. The only requirements are that you’re at least 21 years old and you’re within New Jersey state lines.

Is It Legal For New Yorkers To Bet In New Jersey?

Yes, it is completely legal for you to travel to New Jersey and bet online. You don’t even need to leave your car. Just make sure location tracking is turned on in the app, pull over somewhere safe, place your bet, then head on home.

If you’re closer to the New Jersey border than you are to a New York sportsbook, this is likely the easiest way to place a legal bet. The same is true for New York State residents who live close to the Pennsylvania border.

New York Sports Betting: Everything You Can And Can’t Bet On

Sports You Can Bet On In New York

You can bet on all forms of professional and out-of-state collegiate sporting events listed at the sportsbook. You can also bet on international competitions, from Korean baseball to French soccer.

The most popular sporting events for folks in New York include:

• Super Bowl
• World Series
• NCAA March Madness
• The World Cup

The professional New York and New Jersey teams that inspire the most betting are:

• New York Knicks
• Brooklyn Nets
• New York City FC
• New York Mets
• New York Rangers
• Buffalo Bills
• Buffalo Sabres
• New York Islanders
• New Jersey Devils

Sports Wagers Not Offered In New York By Law

You cannot bet on in-state college athletics in New York State. That means powerhouses like Syracuse, Buffalo, and Army are strictly off-limits.

You also can’t bet on high school sports or any sport with participants under the age of 18 (like esports).

What Are The Types Of Sports Bets Available In New York?

As long as you’re not betting on in-state colleges and universities, everything else is fair game. You can bet as much as the sportsbook is willing to accept as well. And you should be able to wager for as little as $1.00 or less.

The specific types of bets might depend on the sportsbook. But all of the sports betting outlets in New York State offer the following options:

• Moneyline
• Points Spread
• Totals (Over/Under)
• Futures
• Prop Bets
• Parlays/Accumulators

All New York sportsbooks also offer in-game (AKA live) betting, where you can place a bet on a game after it’s begun.

Beyond those options, things get a bit more nuanced. Specific sports have specific types of bets. For example, the Grand Salami for hockey. Some sportsbooks will offer teasers and pleasers, others won’t.

You can call ahead to see what’s on offer before driving to a casino. Many sportsbooks also have a “bet builder” tool on their website so you can determine your bets ahead of time.

Are There Bonuses At Physical Sportsbooks In New York?

No, not in the same sense as an online sportsbook bonus. The casino may have some promotional offers, such as a spin for a prize when you sign up for their reward program.

But the “first deposit” and “risk-free” bet offered by Caesars, DraftKings, FanDuel, and BetRivers are not offered at the physical location. When online sports betting comes to New York, you’ll have your pick of numerous bonus offers.

However, it’s still worthwhile to sign up for the rewards programs. You can earn points that can be used toward hotel stays, tickets to shows, free meals, and other special offers.

Is It Worth It To Use Illegal Sports Betting Sites?

No. Some people will beg to differ with us on that, but it’s just not.

Offshore betting sites are breaking New York State law. In fact, their lack of oversight allows them to offer their services practically anywhere. The question is: What else can these websites do with impunity? When a bettor doesn’t have any real recourse if there’s a dispute, that’s an unsafe betting site, period.

What’s to say your personal information is safe? Will you be paid out your winnings? Are the bonus terms and conditions reasonable, or are they designed to rip you off?

You can do research, read reviews, and weigh the risks. But at the end of the day, isn’t gambling risky enough? Do you really want to add potentially joining an illegitimate website into the mix?

It’s understandable that someone might consider offshore alternatives. If you just want to put ten bucks on the game you’re watching, it’s probably not worth it to get in the car and drive to Chittenango, NY, or the New Jersey border.

But the safest answer isn’t to join an illegal site. The safest choice is to not bet on the game.

Remember to Gamble Responsibly. Call 1-800-GAMBLER if you think you have a gambling problem.

Sports Betting In NY – Common Questions

Yes. In January 2019, New York State legalized sports betting, and the first locations opened in October 2019. New York currently prohibits online sports betting in every form except for Daily Fantasy Sports (DFS). But New York residents can travel to New Jersey or Pennsylvania to legally place online sports bets.

Technically, yes. But no casino in New York City offers sports betting, and OTB facilities cannot host sports betting.

In fact, the state’s largest casino, Resorts World at JFK Airport, does not host a sportsbook.

That means New Yorkers need to travel upstate or into neighboring states to place a legal sports bet.

If you are physically located within New Jersey, you are able to place online bets via any of the New Jersey sportsbook apps. You are allowed to sign-up and deposit while in New York but sports betting apps check your location (via GPS) when placing a bet.

We estimate that NY online sports betting would bring $900 million dollars in annual revenue and up to $1.3 billion if skins are allowed. New York would quickly become one of the largest online sports betting markets in the United States.

Between 18 and 21. At New York State tribal casinos, the gambling age is 18. At commercial casinos, the gambling age is 21. You’ll still need to be 21 at the tribal casinos to purchase alcohol or gain access to some events.

Yes. But not if any of the competitors are under the age of 18, which may be why you rarely find esport contests listed at American sportsbooks.

The most prominent professional teams employ the best players in the world, many of which are under 18. But it is possible to see bets on the highest profile tournaments, such as the League of Legends World Championship.

All professional and collegiate level sports except for in-state schools. You can bet on all major leagues in the US and internationally. All NCAA contests are also fair game unless they involve schools like Syracuse, Buffalo, and so on. You cannot bet on amateur or high school sports, the weather, TV, or politics either.

Yes, as long as no in-state schools are playing. That means most Division 1 NCAA schools are fair game. And if you are betting on out-of-state schools, you should be able to place all the same bets as you would on a professional sport, including in-game betting.

But betting on college football games that feature Syracuse, Buffalo, Army, or any other in-state school are explicitly not allowed.

Yes. You’ll need to pay the 24% federal income tax as well as New York income tax on net gambling winnings. This includes anything won at the casino, sportsbook, or lottery. You also may need to pay an additional city tax depending on where you live in the New York Metropolitan Area.

Yes, the physical DraftKings Sportsbook has a presence in New York. You can find the DraftKings sportsbook at del Lago Resort, which is located in the Finger Lakes region.

DraftKings does not yet have an app available in New York. They’ll need to wait until the state greenlights online sports betting.

Yes. The FanDuel Sportsbook is available in Tioga Downs Casino in Nichols, New York, a racino that offers both casino games and sports betting as well as on-site horse racing.

Penn National Online Betting

However, the FanDuel Sportsbook app can only be used if you travel to Pennsylvania or New Jersey, where online sports betting is legal.

After nearly crapping out, Penn National Gaming appears to be back on a streak.

Its partnership with Dave Portnoy‘s Barstool Sports at least in part fueled Penn stock’s rise, fall and resurrection from January to June.

Penn National wanted to go big

The roller coaster ride came about because Penn, a top regional gaming company headquartered in the heartland of Pennsylvania just north of Harrisburg — think small-town suburbia set among farm fields and forested small mountains — had bigger aspirations at the start of the year.

What had begun as a family horse racing business wanted to go really big.

Having made itself a presence in nearly every legal US gambling market, with 41 properties and 26,000 employees, Penn was bumping up against economic concentration regulations.

Penn Gaming Sports Betting Application

Penn wanted Barstool as an online sports brand

That meant the only way for it to really grow was to tap a new market, a market free of the geographic constraints that came with buying or building yet another property.

The booming online sports betting market — which Penn had only tapped through brick-and-mortar under a past executive team — was its ticket to the gaming stratosphere.

On Jan. 29, Penn National rolled the dice and bought a 36% share of the sports-centric, risque and sometimes raunchy blog and podcast business Barstool Sports.

The purchase was for approximately $135 million in cash and $28 million in shares of non-voting convertible preferred stock. Penn swiftly closed the deal after the announcement.

Additionally, Penn National agreed to increase its ownership of Barstool to approximately 50% through an incremental investment of approximately $62 million at the end of three years.

Barstool brings a new demographic to Penn

Jay Snowden, president and CEO of Penn National, spelled out the rationale of buying a company without an internet gambling platform on the company’s website:

“This exciting new partnership with Barstool Sports reflects our strategy to continue evolving from the nation’s largest regional gaming operator, with 41 properties in 19 states, to a best-in-class omnichannel provider of retail and online gaming and sports betting entertainment.

“With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database.

“In addition, with 66 million monthly unique visitors, we believe the significant reach of Barstool Sports and loyalty of its audience will lead to meaningful reductions in customer acquisition and promotional costs for our sports betting and online products, significantly enhancing profitability and driving value for our shareholders.”

Coronavirus disrupts the plan — and Penn’s stock value

And on paper, the plan worked at first.

The stock, which had hovered in the $25 to $26 range at the start of the year, hit $38.28 a share on Feb. 13.

Then came COVID-19 and an existential crisis for Penn stock, which bottomed at $4.52 on March 18.

Casinos shut down. Horse tracks shut down. Penn furloughed most employees. Two PA expansion projects, mini-casinos, stopped construction. Assets were sold. A huge stock offering followed to raise cash.

Penn casino reopenings coincide with rising stock price

But now properties are reopening. Employees are returning. But at least at least 1,900 Penn jobs at casinos are gone for good as the company pivots toward online wagering. Resuming work on the mini-casinos in Yorkand Morgantown still awaits, though.

Meanwhile, Penn is rebranding its retail books to carry the Barstool name. Its mothership casino in PA, Hollywood Casino at Penn National Race Course, is back up and running, and the company is working to create an online presence based on the Barstool brand.

In fact, despite recently announced permanent layoffs, the company is on a hiring tear.

On Monday, CNBC’s Jim Cramer remotely hosted Snowden of Penn, along with Portnoy and Barstool CEO Erika Nardini, on his program The Street.

And while Cramer briefly discussed Penn stock’s up, down and up record so far this year, he only spoke of Barstool and the coronavirus shutdown when laying out the context.

Penn plans August launch of Barstool online betting app

Snowden told Cramer that Penn had 70% of its propertiesoperating at 50% capacity and had called back 11,000 employees. No mention was made of the permanent job losses.

Snowden also told Cramer that the Barstool online book should launch in August. The target would put Penn ahead of the anticipated NFL start.

Nardini spoke of Barstool’s growth across platforms and the devoted audience it delivers.

Davey Day Trader moves the market again

Portnoy, uncharacteristically wearing a suit (brokers referred to as “suits” are frequent targets of his diatribes), predicted that Barstool will be the “dominant player” once sports return.

He boasted later that night on Twitter to his 1.5 million followers:

“I just sold the shit out of myself in Penn National.”

By the next day, Penn’s stock was up more than 17% at midday. Penn closed up about $5 a share, or just under 13%, at $36.82. Several market stories took note.

Two days later, the price has mostly played in the $33 range.

Since his highly publicized shift to “Davey Day Trader Global,” Portnoy has demonstrated an ability to influence stock prices, presumably through his “stoolies” who have followed him into the market. His latest national appearance is yet another example of the “Barstool effect” at work, some say.

Penn National’s imminent expansion into online sports wagering and the long-term stability of the stock price should provide a more accurate picture of the company’s position in the months to come.