In order to stop the flow of New Yorkers and their dollars into New Jersey (and then some immediately back home to N.Y.) to bet on sports legally, the Empire State will have to legalize sports wagering itself. While lawmakers figure out how to accomplish that, Governor Andrew Cuomo, not exactly a gambling proponent, has effectively given the green light for a half-measure of sorts for four upstate commercial casinos to begin taking wagers in the next 100 days.

With the state facing a $3.1 billion fiscal gap, Cuomo introduced a state spending plan that will top $170 billion and find new revenues from sports betting.

In his State of the State speech Tuesday, Cuomo called for sports betting to be authorized in New York’s four upstate casinos within the first 100 days of his 2019 agenda.

“We authorized upstate casinos. Let’s authorize sports betting in upstate casinos. It’s here, it’s a reality,” Cuomo said in his speech. He didn’t elaborate any further in his 90-minute address.

Cuomo didn’t endorse statewide legalization

It’s not a statewide legalization of sports betting, however. Cuomo’s budget director, Robert Mujica, said the governor’s office believes there would need to be a change to the state constitution to allow sports betting anywhere but in the existing private and tribal casinos.

The Oneida Indian Nation announced last week they’re partnering with Caesars Entertainment to bring sports betting to three of its casinos in New York. The deal would sports betting in 2019 to Turning Stone Resort and Casino in Verona, NY, the Yellow Brick Road Casino in Chittenango and Point Place Casino in Bridgeport.

Sports betting already legal in New York, sort of

In 2013, the state passed the upstate New York Gaming Economic Development Act (the “Act”), which amended the state constitution and made provisions that would legalize sports betting in the event of a change in federal law, which has occurred.

But according to the Act: Only the four private, commercial casinos across the state are permitted to take wagers (upon the creation of regulations by the NYSGC), and not online: del Lago in Seneca County, Tioga Downs in Tioga County, Resorts World Catskills in Sullivan County and Rivers in Schenectady County.

Cuomo didn’t mention online wagering in his speech but according to the Act, “an operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge. A person placing a wager shall be at least twenty-one years of age.”

While New York looks like its moving forward with sports betting, online wagering is more complicated, especially after the Department of Justice reversed the Wire Act opinion Monday.

It’s believed more legislation is needed to guide the regulatory process in New York. Lawmakers in New York started the sports betting conversation last year but none of the initial bills gained much traction.

Efforts are already underway to legalize sports betting in 2019. Sen. Joseph Addabbo has pre-filed a New York sports betting bill which matches a failed 2018 attempt from his predecessor, Sen. John Bonacic.

DraftKings and FanDuel Sitting Pretty in NY

DraftKings and FanDuel were quick to set up sportsbooks in New Jersey and both will be well-positioned in New York if sports betting is limited to the four upstate casinos. Del Lago Resort & Casino reached a deal with DraftKings to create an on-site sportsbook, and presumably online when regulations permit.

Tioga Downs has a deal in place with British gaming company Paddy Power Betfair, which owns FanDuel. That means FanDuel Sportsbook will enter the property and set up a retail sportsbook as in New Jersey at the Meadowlnds, then head online in New York, likewise, when regulations permit. That may take until 2021, but we’ll see.

Betting over the bridge in NJ

It’s not a surprise that Cuomo wants to move ahead with sports betting in New York. Neighboring New Jersey is already reaping the benefits of legalized sports betting. New Jersey reported a December handle of $319,173,548 from sports betting and a gross gaming revenue across the books of $20.8 million. While the handle is down from the record-breaking $330.7 million in November, New Jersey’s total handle for the year has surpassed $1.2 billion.

Some of that $1.2 billion is coming from residents New York State residents. Those living in close proximity to New Jersey are crossing over the border, making wagers on their mobile phones, and returning home.

It’s not an option for all New York bettors. Someone in Buffalo isn’t going to drive eight hours to place a wager in New Jersey. However, bettors living in the New York City market can drive over the river to New Jersey and place a bet. It’s all perfectly legal as long as the person is physically in New Jersey.

FanDuel says 9 percent of its customers are from New York, while DraftKings estimates 10 percent of its customer base is from outside New Jersey.

Cuomo didn’t go all in on sports betting but it’s a positive sign in a state historically slow to make political decisions. Who knows? Some casinos in the New York could be taking bets by March Madness. It’s a start.