New York State Senate passes budget with online sports betting measures

News  /  Published 17 Mar 2021  / 

The New York State Senate has passed its 2021-22 state budget proposal, which includes provisions and requirements for the operation of mobile sports betting in the state.

The budget reflects many of the stipulations published earlier this week in the State Assembly’s proposed budget, including a $12m licensing fee for the operation of mobile sports betting, to be secured through one of New York state’s land-based casinos.

For land-based sports betting, the Senate has proposed a tax rate of 8.5% of GGR, while for mobile a tax rate of 12% is proposed, as was also recommended by the State Assembly in its budget proposal.

In addition, it has passed a proposal to include a “sports wagering royalty fee” of 0.2% of the total amount wagered, to be remitted to the gambling regulator.

If GGR was 5% of the total handle, this would equate to a tax rate of a further 4% of GGR.

The Senate’s budget requires the regulator to distribute 5% of the tax imposed for problem gambling education and treatment purposes.

It also includes a plan to study the potential for the creation of an interstate database of all sports wagering information, for the purpose of integrity monitoring.

The Gaming Commission will create a final report regarding all of its findings and recommendations on this matter, to be delivered no later than March 1, 2022.

State senator Joseph Addabbo Jr., a long-time supporter of the introduction of sports wagering to New York, commented on the proposal.

“I appreciate the efforts of my Senate colleagues and staff for all the work that produces the Senate One-House Budget, especially in terms of including mobile sports betting and the expediting process for New York State’s three unused downstate casino licenses,” he said.

“This brings us one step closer to giving people a way to responsibly, legally and safely place bets from anywhere in New York.”

“I look forward to the productive budget negotiations with the Assembly and Governor’s administration, as we focus on providing New Yorkers with the best possible mobile sports betting product and a witnessing of increased revenue and educational funding, while also expanding problem gambling measures and job opportunities.”

 

Source: iGB North America