new york online sports betting

Assemblyman J. Gary Pretlow’s recently introduced bill to expand the number of New York online sports betting operators and reduce the state’s sports betting tax rate has been included in the Assembly’s One-House budget resolution.

As New York’s budget construction begins to heat up, both the Assembly and Senate propose their own One-House budget resolutions, which are basically what the legislative bodies are hoping to see in Gov. Kathy Hochul’s final budget.

Hochul will begin negotiating with Senate and Assembly representatives to determine what will be included in the state’s final budget, which is due at the end of the month.

Last year, former Gov. Andrew Cuomo included online sports betting in his final budget proposal.

Increase in New York Sports Betting Operators

Pretlow’s bill 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 up to 16 by Jan. 31, 2024.

Currently, only nine operators have been approved to offer sports betting in the Empire State.  Caesars Sportsbook NYDraftKings Sportsbook NYFanDuel NYBetMGMPointsBet NYWynnBET NYBetRivers NY and WorldBET are live, while BallyBET will likely launch in April.

The bill will also establish a goal to award 30% of online sports betting licenses to be awarded to businesses owned by members of a minority group.

When he introduced the bill, 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.

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 would lead to a reduction in the overall tax rate.

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%
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