The New York State Senate and Assembly both included online sports betting in their 2021-22 budget plans, for the first time ever.
State Senate and Assembly Both Passed Online Sports Betting in Budget Plans
The New York State Senate has issued its budget plan for 2021-22, which provides guidelines and conditions for the state’s mobile sports betting industry.
The State Senate and Assembly both passed online sports betting clauses in their fiscal year budgets for the first time, putting statewide online wagering closer than ever to becoming the largest regulated gambling market in the US.
Legislators have two weeks to iron out discrepancies between the two budget proposals regarding the sports wagering, casino licenses, and racetrack funding provisions in the state’s projected $200 billion budget for 2022.
Senate Proposes $12 Million License Fee to Operate Mobile Wagering
Many of the clauses in the State Assembly’s proposed budget were released earlier this week in the Senate budget, including a $12 million license fee over mobile sports betting operations, which will be secured by one of New York’s brick-and-mortar casinos. The Senate has introduced an 8.5% tax rate on land-based sportsbooks and a 12% tax rate on mobile sports wagering as suggested by the Assembly in its budget plan.
Furthermore, it has approved a plan to levy a 0.2% “sports wagering royalty fee” on all bets, that will be paid to the gambling regulator.
On the condition gross gambling revenue (GGR) reaches 5% of the total handle, an additional tax rate of 4% of GGR would be put in place. According to the budget, the regulator would be required to allocate 5% of the tax collected towards problem gambling care and education. The Gaming Commission will release a final report including all of its conclusions and recommendations on the subject by March 1, 2022.
Towards Safe, Legal, and Regulated Wagering
The Senate budget also comprises a plan to explore the feasibility of establishing an interstate directory of all sports gambling data with the intent to monitor integrity.
State Senator Joseph Addabbo Jr., who has been supporting the legalization of sports betting in New York for years, commended the efforts made by the legislators in charge of the Senate budget. “This brings us one step closer to giving people a way to responsibly, legally, and safely place bets from anywhere in New York,” he declared.
Addabbo said he was looking forwards to “productive budget negotiations” with the Governor’s office and the Assembly. Lawmakers are dedicated to providing the “best possible mobile sports betting product” while bringing funds to the state and education, in addition to job creation and the expansion of measures to fight problem gambling.