Online casinos are becoming more likely than ever in New York. Sen. Joseph P. Addabbo Jr. introduced a bill, which works to legalize online casino gambling. This bill does not include Poker however.
The tax rates are quite hefty on winnings. The bill includes a iGaming tax rate of about 30.5%, for reference most states average between 15% to 18% for their rates.
“I’ll say with confidence we can do at least $1 billion with iGaming. I think more, but I’ll say conservatively we can do $1 billion annually,” Addabbo Jr. said this to ESNY.
Approval for iGaming Bill from Sports Betting Operators
As of recently, DraftKings CEO Jason Robins and FanDuel President Christian Genetski have testified in front of the Senate Standing Committee on Racing, Gaming, and Wagering wishing to lower the current online gambling tax rate of 51%.
Both Robins and Genetski argued for New York lawmakers to legalize iGaming in order to increase revenue.
In addition to the nine current licenses for online sports betting operators, the bill also allows New York racinos, casinos and tribes to hold an iGaming license. The license will be valid for 10 years and will require a $2 million license fee to hold.
Gov. Kathy Hochul didn’t include anything related to iGaming in her recent executive budget proposal for 2024.
Additional Licenses Up For Grabs
iGaming will be regulated by the New York Gaming Commision and they will accept bids for the three iGaming licenses and after the bidding process award the documents to the highest bidder.
If the awarded bidder is found to be accepting revenue from unregulated places their license will be revoked by the New York State Gaming Commision.
The Betting Tax Rate Fight Continues
There is still a debate over the 51% tax rate in New York and a hope to lower the rate.
“The market is built on an unstable foundation, namely a 51% tax rate, which is by far the highest in the country,” Robin said.
If a lower and more sustainable tax rate is implemented it will ensure success for New York’s sports betting market.