Posted on: Feb 26, 2022 at 4:57 am.
Last updated on: February 26, 2022, 01:45 am.
Less than two months after mobile sports betting launched in New York, one of Albany’s biggest gaming advocates wants to see even more online betting in the state.
On Thursday, Senate Committee on Races, Gaming and Betting Chairman Joseph Addabbo, D-Queens, filed S8412. The bill would allow the state’s commercial and tribal casinos to offer iGaming apps on up to two platforms, and those platforms could be brick-and-mortar brand independent.
Casinos eligible to offer iGaming would pay a license fee of $2 million, while independent operators would pay $10 million. The licenses would be valid for 10 years, with the New York State Gambling Commission determining how to extend them.
The bill will tax gross gaming revenue at 25 percent, about half the rate at which mobile sports betting operators have their EGR taxed. The draft law states that promotional loans are not considered taxable.
In his billing note, Addabbo estimated that royalties would bring the state about $150 million in upfront funding. Taxes would bring in about $475 million a year, according to “conservative market estimates.”
iDEA growth gives credit to Bill
With the Hochul administration — and also Pretlow and Addaboo — making expediting the granting of the three remaining brick-and-mortar casino licenses a budget priority for this year, it’s uncertain what chance the iGaming Act will have of getting passed by the legislature.
However, the leading online gambling advocacy group thanked the senator for submitting his bill and hopes his peers give it serious consideration.
“We have long argued that states need to consider regulating online casino gaming along with sports betting,” said John Pappas, state advocacy director of the iDevelopment and Economic Association (iDEA Growth). “Kudos to Sen. Addabbo for leading this effort to ensure all consumers of online gaming, not just sports bettors, are protected and New York State generates even more tax revenue.”
There is currently no law accompanying Addabbo’s iGaming legislation before the State Assembly.
Mobile sports betting in New York remains strong
Addabbo cited the strong start of mobile sports betting in the state as impetus for the filing of the iGaming bill. On Friday, the New York State Gaming Commission released the latest weekly figures showing that New Yorkers wagered more than $2.8 billion in the first six weeks of online gambling. This sportsbook reported $179.3 million in revenue.
Based on the mobile sports betting tax rate of 51 percent, that means the state has received $91.5 million since betting began on Jan. 8. Initial projections called for the state to receive $49 million in tax revenue for this fiscal year, which ends March 31. The data shows that New York has quickly become the leader in mobile sports betting in the United States.
Similarly, if approved, New York would quickly become the national leader in online casino gambling, bringing the state hundreds of millions of dollars in tax revenue annually as it continues to recover from the economic downturn caused by the COVID-19 pandemic recovered. the senator said in his memo.
For the week ended last Sunday, the Gambling Commission reported a total of $353.4 million. That’s the smallest amount wagered for a full week since the mobile apps went live, but it’s also the first week without football games in the upcoming fixtures. It also roughly amounts to a monthly figure of $1.4 billion, a figure that would still beat neighboring New Jersey’s best-ever month – and which ties heavily to a whole host of collegiate and pro playing soccer.
Handle totals should temporarily pick up again in the coming weeks as college basketball resumes postseason. The NCAA men’s tournament begins on March 15 with play-in games and runs through April 4 when the championship game takes place.