The New York State Assembly has suggested a licensing system for mobile sports betting in its 2021-2022 Budget Proposal.
If the State Assembly’s proposals became a reality, mobile operators would be subjected to a 12% tax rate on their gross gaming revenue (GGR).
The 2021-2022 Budget Proposal also includes projections for the potential profitability of mobile sports wagering for the state.
How much would licences in New York cost?
Operators wishing to obtain a sports betting permit in New York would need to pay a $12 million fee.
Retail sports betting would be taxed at a lower percentage than mobile wagering, at 8.5% of GGR each fiscal year.
Currently, New York has four commercial casinos and three tribal betting operators. Each of these would be allowed two mobile skins each.
How big are the chances of regulated mobile sports betting coming to New York?
New York Assemblyman Gary Pretlow’s proposals contrast greatly to what Governor Andrew Cuomo has in store for potential sports betting if he was to get his own way. Therefore, the regulation of mobile sports betting on a large scale is far from being a done deal.
Cuomo is a well-known opponent of sports betting in New York. However, he has considered the idea of regulating the vertical. But he has stated in the past that he’s more interested in having a monopoly operator.
The State Governor is currently considering ways to help the state recover from the impact of COVID-19. He was also grappling with a state budget that was already rising, irrespective of the pandemic.
While there’s still a long way to go, having a place in the budget is progress for New York. Back in 2019, not even a vote was allowed for mobile sports betting legislation.
The potential impact of legal mobile sports betting in New York
Numerous New Yorkers already bet on sports. However, a lot of them go to New Jersey to wager, since the vertical is legal across the water.
It’s believed that 20% of wagers on sports in the Garden State are from New York residents.
If mobile sports betting was opened up to commercial operators, it’s predicted that the vertical could have a fiscal impact of $180 million in 2022.
In 2023 this would drop to $86 million, before rising to $112 million in 2024 and $118 million in 2025.