- Lawmakers in New York are continuing efforts to rework the 51% tax rate for sportsbooks.
- The bill would also increase the number of sports betting operators in New York.
- New York has benefited greatly from the 51% tax rate, taking in $163.6 million in taxes since launch.
NEW YORK – Lawmakers in New York are continuing efforts to rework the current 51% sports betting tax rate in place by regulation.
The session deadline for the bill is June 2, 2022, if they aim to see the changes made this year. Assemblyman Gary Pretlow and Senator Jon Addabbo are the main sponsors of the bill and would are confident that they can convince other lawmakers that this benefits the New York sports betting market.
New York Tax Bill In The Works
In addition to the lowering of the 51% tax rate, A08658 would also include new betting options, alter the requirements for mobile betting licenses, and increase the number of sportsbooks available in NY.
The additional betting options would include NASCAR events and fixed-odds for horse racing betting.
The way it works is that the more mobile sports betting options available, the lower the tax rate would be. The bill will see a total of 14 operators live by January 2023 and 16 operators by January 2024.
Despite the efforts of Sen. Addabbo and Assemblyman Pretlow, the bill has failed to gain any major traction as lawmakers are content with the current sports betting system.
An Uphill Battle
What A08658 and twin bill S08471 are going up against is the current success of the NY sports betting market.
In the three months since mobile betting launched, New York has seen $163,614,689 in taxes with the 51% rate.
While the addition of new sportsbooks might be a selling point, the major operators in FanDuel, DraftKings, and Caesars already have a strong foothold in New York. This makes the additional sportsbooks option less tempting.
Those in support of the tax change expect to continue their efforts even if they fail to pass by the deadline. Lobbyists are expected to continue campaigning and operators like Barstool Sports and Fanatics are expected to support the change so they can enter the New York market.
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Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.