ALBANY — Mobile wagering on sports is at least three years away in New York, based on the interpretation of the state constitution advanced by the Division of Budget on Tuesday.

The good news for New Yorkers anxious to start gambling on sports is that state regulations making it possible are "imminent." The bad news: Betting will only be possible from one of the four upstate commercial casinos, including Rivers Casino & Resort in Schenectady, or at Native American gaming halls.

"If we want to expand it beyond the land-based casinos ... we need a constitutional amendment," state Budget Director Robert Mujica told reporters Tuesday.

This conclusion wasn't necessarily a surprise to the industry, as the state constitution narrowly defines what types of gambling are allowed, and a 2013 law creating a broad framework for sports gambling only identified the upstate commercial casinos as potential venues.

State legislators and gambling operators had sought workarounds to the restrictive language, including locating internet servers within casinos or allowing partnerships with non-casinos.

State Senate Racing & Wagering Chair Joe Addabbo, who on Tuesday introduced a constitutional amendment authorizing more operators and mobile wagers, suggested debate over the issue wasn't over and and anticipated it would be the subject of budget negotiations.

"Here is where the interpretation starts," the Queens Democrat said.

In order to maximize state revenue and job creation, he stressed the importance of maximizing sports gambling options. The state budget only projects $4 million in revenue from sports gambling for the upcoming fiscal year due to the restricted availability.

"If everybody interprets our constitution to say we're limited and we need a constitutional amendment, so be it, "Addabbo said. "I'm just a little disappointed by that, because it's a three-year process."

A constitutional amendment couldn't be approved by voters until 2021 at the earliest.

The limited rollout means the Capital Off-Track Betting locations, Saratoga Race Course and Saratoga Casino Hotel would be shut out from taking sports bets.

Michael Kane, president and executive director of the New York Gaming Association, whose members include Rivers Casino and the Saratoga Casino, said the state's interpretation of the constitution was "slightly conservative," but they couldn't necessarily disagree with it.

"I think our group is a little disappointed, but understand the complexities," Kane said.

In May, the U.S. Supreme Court ruled that states could implement sports gambling. The law allowing for upstate casinos tasked the state Gaming Commission with filling in the regulatory details, although last year Gov. Andrew M. Cuomo initially maintained that additional legislation was required.

Once regulations are issued, they will also apply to the Native American-owned casinos because of their compacts with the state.

Greg Carlin, CEO of Rush Street Gaming, which operates Rivers Casino, said they've been contemplating since May what their sports book would look like.

The Schenectady casino wants to carve out a space in its Van Slyck's bar that can easily fit 90 people and offer a Las Vegas-style experience with television screens and comfortable seating. There's anticipation that the offering could attract new visitors to the casino.

"We'll move as quickly as the Gaming Commission allows us to," Carlin said.

In anticipation of the commission issuing regulations, some casinos have been creating partnerships with major industry players.

The Oneida Indian Nation, which operates three casinos in central New York including Turning Stone Resort, is expecting to launch The Lounge with Caesars Sports this year at its locations.

Deals struck by commercial casinos in the Finger Lakes and Southern Tier with DraftKings and FanDuel, respectively, now appear in danger, as the fantasy sports providers are primarily internet-based operations. Additionally, these partnerships would need to be approved by state regulators, who have previously raised concerns about the online operators.

Cuomo's proposed state budget could also make Rivers Casino more attractive for gambling on horse races, as it eliminates a surcharge that would result in higher payouts at the parlor run by the Capital OTB.

David.Lombardo@timesunion.com - 518.454.5427 - @poozer87