New York State plots second sports betting market expansion attempt
Legislation would see staggered license numbers increase with commensurate reduction in Empire State tax rate
New York Senator Joseph P. Addabbo Jr., has tabled a new bill which would see the staggered expansion of available sports betting licenses in the Empire State.
Senate bill S1962 would commit New York State to increase its available mobile sports betting licenses over the next two years, beginning in 2024, when the state would be required to increase from nine licenses to 14.
Available license numbers would then be required to increase again, to no fewer than 16 operators by January 31, 2025.
The increase in licensees would then see a commensurate decrease in the state’s taxation rate of sportsbook operators, currently one of the highest in the US at 51%.
New York’s initial market roll-out saw taxation methods based on the number of licensees, with a potential rise to 15 operators or more reducing the tax to just 25%.
The bill has been tabled ahead of meetings to discuss the New York State budget.
According to recent figures released by the state, New York generated a whopping $909m during its first year of sports betting, an amount it may be reluctant to give up.
However, one potential boon would be the increased numbers of operators in the market applying for licenses, which start at $25m for a platform provider and rising to $50m for a full operator license.
Operators that could potentially apply for a license should the bill be passed include bet365, Barstool, and Fanatics, all of which were denied licenses in the initial application period in 2021.
In addition, the bill would amend current definitions of a ‘sports bet’ to incorporate “other things of value”. This would include promotional credits used by operators, something which would see it excluded from the definition of taxable revenue in the state.
S1962 would also allow operators to carry forward losses from a previous month when determining overall revenue for taxation purposes.
In his justification for filing the bill, Senator Addabbo highlighted the positives derived from embracing more operators.
“New York State recently authorized mobile sports betting in New York and licensed nine operators. While there has been an exciting start to mobile sports wagering in New York, there is still room for improvement,” Addabbo wrote in the preface to the bill.
“This legislation would clarify and update the laws governing the current operations and would direct the Gaming Commission to issue additional mobile sports wagering licenses so that we can continue to grow and improve the market,” he concluded.
The new bill is the second attempt made by Senator Addabbo and his colleague Assemblyman J. Gary Pretlow to expand the New York sports betting market by adding additional licensees, following similar attempts in March 2022.
These bills ultimately failed to pass through the legislature during the 2022 session.
Senator Addabbo recently spoke to EGR North America about the growth of the New York market. Read the interview here.