- New York lawmakers are weighing a bill to eliminate state-level gambling loss tax deductions following recent federal changes.
- Meanwhile, Missouri and New Jersey continue reshaping their legal sports betting markets with new restrictions and licensing rules.
ALBANY, N.Y. – From tax reform in New York to campus ad bans in New Jersey and regulatory prep in Missouri, states with legal sports betting are continuing to regulate. As federal changes ripple across the industry, local lawmakers are responding with new rules, restrictions, and revenue strategies.
New York Gambling Loss Deduction
Following the federal passage of the One Big Beautiful Bill, which reduced gambling loss deductions by 10%, lawmakers are considering eliminating New York sports betting deductions altogether.
Introduced in May, Senator Andrew Gounardes’s SB 7876 seeks to block itemized deductions for gambling losses, potentially generating $50 million annually in sports betting taxes for the state.
The proposal has cleared a budget committee and may resurface in a fall special session.
All the while, Rep. Dina Titus introduced the FAIR BET Act in Congress to reverse the federal cap, warning that taxing phantom gambling winnings may be a detriment to the legal sports betting industry for both players and operators.
New Jersey Bans College Betting Partnerships
New Jersey has enacted a law banning sports betting partnerships between public colleges and gambling companies. Signed by Gov. Phil Murphy, the legislation, A-4113, prohibits promotional deals across campus venues and school media, citing concern for student well-being amid rising betting activity.
Spearheaded by Senators Joe Cryan and John McKeon, the New Jersey sports betting bill aims to reduce the influence of gambling on young adults by severing financial ties between universities and sportsbooks.
This builds on New Jersey’s long-standing ban on betting involving in-state college teams and reflects broader efforts to regulate how and where student-athletes and college communities encounter gambling promotions.
Missouri Opens Public Comment Ahead of December Launch
Missouri is inching closer to its Dec. 1 sports betting launch as the Missouri Gaming Commission opens a public comment period on its proposed rules.
Three new supplier applications have been filed: Catalist, GeoComply, and Gaming Labs International. Meanwhile, operators like DraftKings and Underdog seek direct or partnered access.
Only two untethered online licenses are available, with final decisions expected by August 15.
All other applications must be submitted by Sept. 12. Companies like BetMGM and bet365 have already secured legal Missouri sports betting access through partnerships, as sportsbooks race to finalize their entry ahead of launch day.
