Online Gambling Legalization Still Under Discussion in NY
A successful launch of mobile betting last year and the growing popularity of online gambling, mainly due to the COVID-19 pandemic, are the main reasons why New York lawmakers are still calling for the legalization of iGaming in the state. Fresh tax proceeds after introducing mobile sports betting early in January last year contributed much to the local economy that was significantly impacted by the pandemic. This is a practical background for the potential of online gambling activities and their taxation.
The chairman of the Senate Committee on Racing, Gaming, and Wagering, Sen. Joe Addabbo, has filed Bill S4856, which calls for the introduction of online gambling by licensed venues, tribal operators, and video lottery terminal operators. According to this proposal, sports betting companies will also have an opportunity to try and secure iGaming licenses.
It is expected that, in case of legalization in the state, online gambling gross gaming revenue would be subject to a 30.5% tax, which is much lower than the 51% tax rate for online sports betting. This opportunity is beneficial for operators and can lead to the delivery of millions in fresh tax revenue to New York. Moreover, the state is expected to benefit nearly $100 million from licensing fees alone.
The Senator predicts that iGaming operations could deliver about $475 million in annual tax revenue after the first year, and the popularity of mobile sports betting in the region makes this prediction quite realistic as the betting handle broke multiple records. Only recently, in January, it hit $1.79 billion.
Addabbo’s proposal is not the only one: Assemblyman Gary Pretlow has recently filed the bill, also calling for iGaming legalization. The distinction between these two proposals lies in different tax rates for online gambling.
It’s worth mentioning that the proposals come at a time when New York is considering the establishment of three new casinos with a respective application request already opened.
In other news, Potawatomi Casino introduces Roulette Progressive, the first in Wisconsin.