New York sports betting bill seeks to expand market

The bill aims to have more operators paying less tax rate.
The bill aims to have more operators paying less tax rate.

The legislation would expand the number of mobile sportsbooks in the state.

US.- One year after the launching of mobile sports betting in New York, which started on January 8, 2022, state Senator Joseph Addabbo has filed SB 1962, which would expand the number of mobile sportsbooks in the state and trigger lower tax rates for operators.

The legislation would expand the number of sports betting operators from nine to 14 by January 1, 2024 and to 16 by January 1, 2025.

Based on the bill’s sliding scale, the New York tax rate on gross gaming revenue (GGR) would drop from 51 per cent to 35 per cent with 14 operators and to 25 per cent with 15 or more.

The initial nine operators paid a $25m licensing fee before entering the market. But new entrants, according to the bill, would pay a $50m licensing fee. The original sportsbooks are FanDuel, DraftKings, Caesars Sportsbook, BetMGM, WynnBET, PointsBet, BetRivers, Resorts World and Bally Bet.

Addabbo, who is also chairman of the Senate’s Racing, Gaming, and Wagering Committee, stated in a bill summary: “While there has been an exciting start to mobile sports wagering in New York, there is still room for improvement.

“This legislation would direct the gaming commission to issue additional [OSB] licences so that we can continue to grow and improve the market.”

New York vaulted past the $15bn mark in terms of betting handle in the early days of December. By the end of the year, the number of total dollars wagered in the state had surpassed $15.8bn. Gross gaming revenue topped $1.3bn, which showered nearly $680m in tax revenue into state coffers.

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