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Senator Joe Adabo As a way to start the conversation, we have introduced a bill to increase the number of online NY sports betting operators and bring tax relief.
Underville S1962, empire state would at least have 14 Online New York Sports Betting Operator January 31, 2024,that’s all 16 operator January 31, 2025.
Made in NY $909 million With revenues dropping significantly in the first year of legal online sports betting, it will be a difficult task to persuade legislators to reduce favorable revenues. 51% tax rate.
Why Adabo introduced the bill
Adabo explained LSR Why he submitted the bill.
“This is the starting point for negotiations in this brand new legislative session at the forefront of the state budget,” said Adabo. Tuesday night.
“Industry, the Senate, and Congress must make credible arguments that increasing the number of businesses or lowering taxes makes financial sense by raising revenue and funding education. Hmm. Someone will have to make that argument.”
Pretlow tried a similar bill but failed
Congressman Gary Pretrow Introduced similar legislation and agreed with Adabo at the last meeting. However, the bill did not move forward.
Pretrow previously told LSR He expected the tax rate to remain unchanged.
“I thought[the tax rate]was outrageous, so I tried to stop it,” Pretrow said in late December. “But the operators are doing it, so I’m not going to educate them to make more money. So I’m sure it[will stay].”
Complaints about New York sports betting tax rates
New York is now Nine Businesses paying the 51% tax rate. His FanDuel, DraftKings, Caesars, and BetMGM executives at top-performing sportsbooks have publicly complained about tax rates.
“Well, the tax rate is ridiculous” Caesars CEO Tom League Said LSR in November.
Indeed, they happily offered and agreed to accept that rate last year in exchange for access to the New York market.
Changes to New York Tax Rates and License Fees
Under Bill Amendment:
- 10-12 operators 50% tax rate
- 13-14 operators 35% Tax rate (2024)
- 15 or more operators twenty five% Tax rate (2025)
The first 9 operators are $25 million License fees before entering the market.However, according to the text of the bill, new entrants $50 million license fee. This increase is the result of participating in a successful market rather than a fledgling market dating back to its January 8, 2022 launch.
Which operators might be interested
Still, tax cuts may be of interest to businesses that didn’t make the top nine. Bet365 was the first operator to be excluded during a joint bid from . fanatic sportsbook When bar stools sportsbook I failed.
expanding rapidly Fanatic previously attempted to lobby for NY tax cuts, in addition to established operators FanDuel and DraftKings. So far, these efforts have failed.
The haves and have-nots in NY sports betting
from January 8-December March 31, 2022FanDuel, DraftKings, Caesars, and BetMGM combined 93% of market share 96% revenue share
It’s unclear how the expansion efforts will be affected if the sportsbook exits the market or is acquired through M&A.
NY sports betting menu will increase?
Pretlow has indicated a desire to increase its New York online sports betting offer to include future betting on individual awards such as MVP, Cy Young and Coach of the Year.
However, it is also unclear whether the wording of the law will need to be changed to accommodate that expansion. If so, it means a three-year process.
It could also add betting kiosks to stadiums and arenas, restaurants and bars to parliamentarians’ agendas.
Addabbo also plans to resubmit legislation to legalize online casino games.
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