- On-site betting would increase the restaurant industry’s economic arsenal.
- Profits have dropped over the past few years for restaurants after COVID-19.
- The association says sports fans are hungry for more sports betting options.
Sports betting is big business in New York and restaurants want in. The New York State Restaurant Association recently started lobbying local lawmakers in an attempt to see the activity offered inside restaurant venues. The association feels that sports betting within the restaurant industry would help the recent struggles involving revenue earnings.
Major Issues for NY Restaurants
Before the pandemic began, the restaurant industry in New York state earned $4 billion tax revenue from $50 billion in sales. However, since the pandemic, the group says that there are issues that have caused a loss of earnings. Costs are higher to operate, there are disruptions with supply needs, and shortages of staff.
All of this has caused a decrease in earnings for the industry. New York State Restaurant Association president and CEO Melissa Fleischut stated that sports fans in New York have embraced sports betting enthusiastically on mobile and within retail venues. The CEO stated that New York needs to capture the opportunity and expand the licensing offered in the state. Allow restaurants to offer services to help meet the demand.
Fleischut says that sports betting would not be a fit for every business but would be beneficial for those that could benefit from it. The additional revenues could mean the difference in closing and staying open for many restaurant owners.
Industry Insiders Agree
The argument for sports betting within restaurants is not lost within the industry. Elys Game Technology executive chairman, Michele Ciavarella, stated recently that New York is a prime landscape for leveraging the enthusiasm surrounding sports betting via retail outlets and restaurants.
Restaurants would provide a level of convenience to sports bettors as players could enjoy dining while also placing a sports bets. The same type of services are offered in states like Ohio and Maryland with great success. Such operations help to contribute to local tax needs within the community and infrastructure.
Elys knows firsthand that this type of service can work. The company works with Grand Central, a sports bar located on 18th street in Northwest, Washington, D.C. Two years ago, the bar received a Class B sports betting license. The bar was the first in the US to become a sportsbook and today it reaps the rewards by earning additional revenues on top of its standard services.
Mobile gambling in New York generated over $900 million in taxes and licensing fees for the state in its first year of operation. If restaurants were added, even more cash would be brought to the state, which would help shore up the coffers even more.
It will be interesting to see if lawmakers decide to go with this plan and add more licensing options or if restaurants will remain left out of the equation.
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