Technical support issues
The state's mobile sports betting sector began on January 8, 2022, allowing a total of nine operators to perform live with the approval and permission of the New York State Gaming Board. However, this model was not welcomed by everyone because some believe that the limited operator model would take diversity away from local sports enthusiasts.
Despite the limited volume of online sports books in Empire State and its recent release, it has already transformed itself into the largest mobile sports betting market in the country. Over $3 billion in processing power in the first two months of operations. But Mr. Pretlow believes there is still room for growth as his bill will allow it to grow to 16 operators by 2024.
The new legislation will allow for a gradual increase in mobile sportsbook operators operating in the state, while also allowing lower tax rates for gaming companies. Currently, operators are required to pay 51% of their total gaming revenue to the state, and also pay a US$25 million time fee for the board's licenses.
For example, if the number of online sports books increases to 10, the tax rate will be adjusted to 50%. When the number of businesses reaches 15, the tax rate will be lowered to 25%. The current tax matrix is the highest in states offering mobile sports betting across the country, with some negative consequences among industry stakeholders.
However, for Mr. Pretlow's bill to be approved, it will need to be reviewed and approved by the New York State Game Commission. Regulators approved a total of nine operators in November last year, but eight are currently online in the market. Operations include FanDual, Caesars Entertainment, DraftKings, PointBet, BetMGM, WynnBET, Bet Rivers, and Resorts World.
In addition, Mr. Pretlow pointed out that more sports books in the state will provide more jobs for local residents, as well as greater tax revenues for the state. He also noted that none of the nine approved operators are minority-run brands, a sign of a lack of diversity. According to him, the only one was the Panatics sports book, but the committee did not license it.
Adabbo's Code of Law
The House's new bill coincides with Senate Racing, Gaming, and Waggering Chair Joe Adabbo's attempt to expand the gaming industry in Empire State.
Sunday, December 3, 2023