If the proposed legislation passes, New Yorkers could see the number of mobile sportsbooks in their state nearly double by 2024.
New York State Assemblyman J. Gary Pretlow is attempting to increase legal online sportsbooks from the current nine to 16. The state launched online sports betting in January, and New York has quickly become the largest market in the nation. In less than two months since the launch, New York has taken more than $3.1 billion in sports bets, and the state has received $104 million in tax revenue from the sportsbooks in operation.
The proposed legislation comes at the same time as some in Albany are trying to lead the state into even more gaming territory. Senate Racing, Gaming, and Wagering Chair Joe Addabbo is the sponsor of a bill that would permit New York online casinos to launch through partnerships with retail casinos, New York State tribal nations, and their independent contractors.
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Bill Would Phase In New Operators, Gradually Lower Tax Rate
Pretlow’s bill allows for a graduated increase in sportsbook operators in the state, with tax revenues changing along the way. For example, once the number of sportsbooks operators reaches 10, the tax rate on adjusted gross revenue would fall to 50 percent. If the number of sportsbooks increases to 15, the tax rate would drop to 25 percent. The tax rate is currently 51 percent in New York, the highest rate in the United States on sportsbook revenue. Operators are also required by law to pay a one-time license fee of $25 million.
The New York State Gaming Commission would need to approve any new bills that seek to change sports betting in New York.
The Jan. 8 launch of online sports betting in New York has been a success, with long-term implications still unclear. Some have speculated that neighboring states like New Jersey would see a dramatic drop in sports betting, but it will take months to know how the new landscape of sports betting will impact other markets.
Both Republicans and Democrats have thrown their support behind sports betting legalization in New York, which has resulted in the creation of a huge market that has already set records. The nearly $2 billion in sports betting handle that New York recorded in its first 30 days broke the previous national mark for a single state. There appears to be bipartisan support for the expansion of licensing in the state, and Addabbo’s bill, if passed, would most likely unleash New York as one of the country’s largest online casino markets.
The lowering of the tax rate on operators could please sportsbooks, some of which have indicated that the cost of doing business in New York is steep and possibly not viable long-term.