Just days after calling for a decrease to the New York sports betting tax rate, Assemblyman J. Gary Pretlow introduced a bill to increase the number of online sports betting operators to at least 14 by 2023 and reduce the tax rate on a sliding scale based on the number of licensed sportsbooks.
Earlier this week, Pretlow spoke with the New York State Black, Puerto Rican, Hispanic, and Asian Legislative Caucus and expressed his desire to see an increase in operators, especially those with minority-owned businesses, and a decrease from the current 51% sports betting tax rate.
His new bill would see the number of operators increased to at least 16 by 2024 and a sports betting tax rate of 25% if 15 or more operators are licensed in the state.
Increase To 16 Operators By 2024
New York Assembly bill 8658 calls for an increase in the total number of approved online sports betting operators in the Empire State to at least 14 by Jan. 31, 2023, and at least 16 by Jan. 31, 2024.
Currently, only nine operators have been approved to offer sports betting in the Empire State. Caesars Sportsbook NY, DraftKings Sportsbook NY, FanDuel NY, BetMGM, PointsBet NY, WynnBET NY, BetRivers NY and WorldBET are live, while BallyBET will likely launch in April.
The bill specifically reserves at least two licenses for minority-owned or minority-represented sportsbook operators. Pretlow said the only company to originally apply for a sportsbook license with minority-ownership representation was Fanatics Sportsbook in 2021. Jay-Z is a partner with the company, but the New York State Gaming Commission ultimately did not award the company with a license.
The good news for the Fanatics is that the bill will allow any company who already participated in the RFP for licenses to participate again if they so choose. The bill sets the application deadline for licenses at Sept. 1, 2022.
NY Sports Betting Tax Rate Decrease
Pretlow’s bill also re-works the New York online sports betting tax rate to coincide with the number of sportsbooks licensed to operate in the state. More licensed operators leads to a reduction in the overall tax rate.
A reduction in the tax rate, and allowing more sportsbooks to operate in the state, would increase jobs, strengthen the sports betting market, and most likely increase tax revenues as well, Pretlow said earlier in the week.
“Aggregate tax revenue would be, if not more, the same as we’re getting now. And it’s more jobs for the state,” he said.
Here is how the tax rate would be affected by the number of operators:
- Four to five operators: 64%
- Six operators: 62%
- Seven operators: 60%
- Eight operators: 58%
- Nine operators: 51%
- 10 to 12 operators: 50%
- 13 to 14 operators: 35%
- 15 or more operators: 25%
The bill is currently referred to the Racing and Gaming Committee. No votes are scheduled as of yet.