Sports Betting ETF Hits Record on Cuomo’s Legalization Support

The biggest sports betting exchange-traded fund rallied as New York Governor Andrew Cuomo announced that he will support legalizing these wagers to help fill the state’s nearly $16 billion budget deficit.

The Roundhill Sports Betting & iGaming ETF (BETZ) jumped as much as 4.4% to an all-time high. One of its 39 components, DraftKings Inc., rose as much as 8.9%.

Sports Betting ETF Hits Record on Cuomo’s Legalization Support

Cuomo, who had previously opposed online sports betting, will call for legalizing it as part of his State of the State policy proposals on Jan. 11, he said during a briefing Wednesday.

The plan, if approved, could raise up to $500 million annually, said state Budget Director Robert Mujica. The neighboring state of New Jersey, which legalized online sports betting in 2018, earned $332 million from it year-to-date in November, up 23% from the same period in 2019, in part due to New Yorkers visiting just to place bets.

Read more: Surging Sports Betting Taxes Replenish Sinking State Coffers

According to Morgan Stanley analyst Thomas Allen, New York could eventually draw an estimated $928 million in the sports betting market, which he projects could reach a total addressable market of $8.5 billion in 2025.

And Oppenheimer & Co.’s Jed Kelly said that New York’s move will likely prompt nearby states Massachusetts and Connecticut to follow in legalizing online sports betting.

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