- New York legislators will mull over a bill to increase the number of online sports betting operators
- The bill will also reduce the online sports betting tax rate in direct correlation with the new licenses
- The bill will allow for a maximum of seven new sports betting licenses
New York sports betting is by far the most successful market in the country, but one legislator thinks it can be even better.
Assemblywoman Carrie Woerner (D-113) yesterday introduced A6013, a bill to potentially expand the amount of New York online sports betting licenses and reduce the state tax rate to as little as 25%.
New York’s currently sports one of the highest tax rates in the country at 51%.
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Maximum of 16 Online Sports Betting Licenses
Woerner’s legislation will allow for up to a maximum of 16 online sports betting licenses in New York, up from the current nine licenses that are available.
It’s a similar piece of legislation Sen. Joseph P. Addabbo, Jr. (D-15), introduced in 2023.
The bill mandates that 14 online sports betting operators be active in New York by Jan. 31, 2026, and 16 be active in the Empire State by Jan. 31, 2027.
Similarly to how the original nine licenses were awarded, the New York State Gaming Commission will accept applications in a public process and grant new licenses. Licenses will be granted on a rolling basis to expedite the process and maximize revenues to the state.
The bill will allow any operator who previously applied for a license to apply again.
Platform providers authorized to offer online sports betting will pay a fee of $25 million for a license, while online sports betting operators will pay a fee of $50 million for a license.
The new legislation also calls for a reduction in the state’s sports betting tax rate concurrent with the addition of new operators. The tax rates will be reduced as such for the number of total sports betting operators:
- 10 to 12 online sports betting operators: 50% tax rate
- 13 to 14 operators: 35% tax rate
- 15 or more operators: 25% tax rate
Conversations to expand the number of operators, and lower the New York tax rate, have been ongoing for the past several years. Any additional operator will be coming into the most profitable sports betting markets in the country, but also one of the most expensive.
Is Change Worth It?
Detractors to New York online sports betting expansion believe change to the market may do more harm than good when it’s already the largest in the country.
New York reported more than $22.6 billion in online sports betting handle for 2024, topping its previous high in 2023 of $19.1 billion.
The online sports betting market in the state has grown every single year in terms of handle, gross gaming revenues, and tax revenues.
Gross gaming revenues and tax revenues also followed suit, as the state experienced highs in both for 2024. The commission reported $2,044,005,840 in gross gaming revenues, an increase of 20.9% over the 2023 gross gaming revenue total of $1,689,883,800.
The most impressive total? New York took in more than $1 billion in sports betting tax revenue for the year, reporting $1,042,442,978 in tax revenues. The final total was nearly a 21% increase over the 2023 tax revenue total of $861,840,738.
A new proposal has been introduced in New York that could potentially expand online sports betting in the state and lower taxes for operators. This move comes as a response to the growing popularity of sports betting across the country and the potential revenue it could bring to the state.
The proposal, which was introduced by lawmakers in Albany, aims to allow online sports betting in New York through licensed operators. Currently, sports betting is only allowed at physical locations such as casinos and racetracks. By expanding online sports betting, lawmakers hope to tap into a larger market of sports bettors who prefer the convenience of placing bets from their own homes.
In addition to expanding online sports betting, the proposal also includes a provision to lower taxes for operators. Currently, operators in New York are subject to high taxes on their revenue from sports betting. By lowering these taxes, lawmakers hope to attract more operators to the state and increase competition in the market.
Proponents of the proposal argue that expanding online sports betting and lowering taxes will not only generate additional revenue for the state but also create jobs and stimulate economic growth. They point to other states that have successfully implemented similar measures and seen positive results.
However, opponents of the proposal raise concerns about the potential negative impacts of expanded sports betting, such as increased problem gambling and addiction. They also question whether lowering taxes for operators is necessary, as the current tax rates are already generating significant revenue for the state.
Overall, the proposal to expand online sports betting in New York and lower taxes for operators is sure to spark debate among lawmakers and stakeholders. As the state continues to navigate the complex landscape of sports betting regulation, it will be important to carefully consider all sides of the issue before making any decisions.
