New York Legislators Want Mobile Sports Betting Inclusion and Lower Taxes
All of this may come at a high cost for beginners in the industry. New York's leading mobile gaming legislators have teamed up on a plan that might drastically change how the state handles mobile sports betting. They seek to increase the number of operators while simultaneously lowering taxes, allowing write-offs, and including more minorities in the betting market as a whole. The measures' goal is to expand the number of operators, which will result in a lower tax rate. The New York State Gaming Commission authorized bids for nine operators late last year. Eight of the firms are presently operational, with Resorts World having just launched its app in the last few weeks. The bill also asks for greater inclusivity in sports betting, requiring the board to accept at least two cases with "qualified minority representation."
The Gaming Commission received proposals from six platform providers representing 14 operators when it issued its RFP last year. Those who were not chosen last year can appeal, per the measure. The bill, however, also permits new businesses to apply. All of this may come at a high cost for beginners in the industry. Pretlow and Addabbo’s legislation asks each operator to pay a $50 million charge. The bill’s wording makes it unclear if the tax would apply just to newcomers. In most but not all circumstances, the platform supplier also serves as the operator. Sports betting in New York has been a huge success for the state. The state recorded a total handling of $350.3 million for the end of February 2022. Sportsbooks made a total of $25.3 million in online gambling revenue. In addition, the state received $12.9 million from the 51 percent tax.
It’s unclear if lawmakers intend to lower taxes on mobile sports betting. Reforming the tax system may not prioritize this year due to other gaming measures being contemplated, such as placing three new casino licenses up for bid. This is especially important considering the deadline for the legislature to enact the financial year plan by the end of April.