Shares of sports betting company DraftKings (NASDAQ:DKNG) and online gambling software developer GAN (NASDAQ:GAN) were jumping higher in morning trading Monday on reports New York Gov. Andrew Cuomo will support mobile sports betting in the state. DraftKings was up more than 6% while GAN was soaring almost 14% higher.
Some 25 states have approved legalized sports betting, but New York requires bettors be physically present at a facility to place a wager.
In contrast, next-door neighbor New Jersey adopted a full-scale sports betting model that allows for wagers to be placed anytime, anywhere, online or in-person, so long as the bettor is within the state's borders. The state has quickly become the sports betting capital of the country.
According to The New York Post, Cuomo will unveil a similar model for New York as a means of increasing tax revenue in the state, which has been hit hard by the coronavirus pandemic.
If it happens, New York could quickly catapult to the top ranks as it would be the most densely populated state with such betting capabilities. DraftKings, as one of the two largest sportsbooks in the country, would readily benefit, while GAN could eventually see positive returns if it were granted a license to operate in the state and its technology was adopted.
Not surprisingly, most names in the sports betting space, including FanDuel owner Flutter Entertainment, were also jumping higher on the news.