A proposal to expand the NY sports betting market while potentially cutting the tax rate in half could be discussed this session.
Assemblywoman Carrie Woerner, who chairs the Assembly Racing and Wagering Committee, introduced A6013, which would allow more NY sports betting licenses. The bill would also reduce the tax rate on sports betting revenue with each new license, down from its current 51%.
Sen. Joe Addabbo introduced similar legislation in 2023.
Any legislation that reduces the tax rate will likely be an uphill battle. Legislative Analyst Troy Mackey told the National Council of Legislators from Gaming States over the summer that there is “no justification” to take money from schools and give it to corporations.
NY sports betting bill details
New York currently has nine sportsbook licenses, but Woerner’s legislation could increase that to 16. The New York State Gaming Commission would follow a public process similar to the initial licensing process in 2021.
It would require at least 14 online sportsbooks to be live on Jan. 31 2026, and 16 the next year.
A tiered system to lower the tax rate would be connected to the number of licenses:
- 10-12 would bring it to 50%.
- 13-14 would bring it to 35%.
- 15-16 would take it 25%.
Sportsbooks in New York
The Empire State is already home to the largest operators:
- Bally Bet
- BetMGM
- BetRivers
- Caesars
- DraftKings
- ESPN Bet
- Fanatics
- FanDuel
- Resorts World Bet
New entries would need to pay $50 million for a license.
Big tax money in New York
Since New York sportsbooks launched in January 2022, more than $61 billion has been wagered. With sportsbooks taking $5.4 billion in revenue, the state has collected nearly $2.8 billion in taxes.
While this bill looks at decreasing tax rates, Addabbo spoke to LSR earlier this year about his proposal to legalize online casinos as a way to find a sustainable revenue source.
Other state lawmakers, including NJ Gov. Phil Murphy, have pitched raising their sports betting taxes. In his budget proposal this week, Murphy suggested nearly doubling the rate to 25% from 13%.
Woerner wary of online casino
Woerner told local media earlier this month that the Assembly would take a look at online casino this session. However, she believes the magnitude of the issue would take more than this session.
“I think in the Assembly we’ll be taking a look at it, but I would not think that we’re ready to take that step yet,” Woerner told City & State New York. “There’s a lot to look at. I know it’s out there and under consideration, and I’ll certainly take a hard look at it. We’ll see.”
In that interview, she said no operators had approached her about lowering the sports betting tax rate.
