New York online sports betting set records during its first year, and for one legislator the time is right to expand its offerings.
Sen. Joseph P. Addabbo Jr., one of the main proponents of New York online sports betting’s legalization, has introduced a bill to expand New York online sports betting operators to 14 operators by Jan. 31, 2024, and no less than 15 operators by Jan. 31, 2025.
New York online sports betting currently only allows nine operators.
More Tax Operators, Reduced Tax Rate
As part of the trade-off to allow for an expansion of online sports betting operators, Addabbo’s bill, S1962, would call for a reduction of the 51% online sports betting tax rate concurrent with the number of expanded operators.
Ten to 12 operators would see an online sports betting tax rate of 50%; 13 to 14 operators a 35% tax rate; and 15 or more operators would see a tax rate of 25%.
The reduction in tax rate would surely mollify potential and current operators, as the 51% tax rate has been a point of contention so far during the Empire State’s first year of operation.
The tax rate has certainly enabled New York to rake in massive amounts of revenue through online sports betting. Last week, Gov. Kathy Hochul (D) announced the state took in more than $900 million in revenue for 2022 through taxes and license fees.
As part of Addabbo Jr.’s new bill, the licensing fees for operators would become more costly. The first nine operators had to pay a $25 million licensing fee and any additional operator would have to pay a $50 million fee.
Assemblyman J. Gary Pretlow introduced a similar bill last year. Pretlow’s bill called for an increase in the number of online sports betting operators to at least 14 by 2023 and a reduction of the tax rate on a sliding scale based on the number of licensed sportsbooks.
It was supported by Addabbo Jr., but the bill never advanced.
Additional Offerings in 2023?
This past June, Addabbo told Elite Sports New York he would push for expanded sports betting options (including bets on drafts) this year.
“This is on my radar, yes, and I intend to discuss this matter during the (2023) budget and session,” he told Elite Sports New York.
When asked if he would also push for legal future bets on player awards – such as an MVP or Rookie of the Year – he said it would likely be discussed in the 2023 session as well.
The legalization of online casino for the state is something that has also been discussed and could be a possibility in 2023.
