One of the biggest reasons that states across the US have pushed to introduce legal sports betting is the revenue that they can create through tax.
Other factors such as the creation of jobs and preventing residents from crossing border lines to place their sports wagers can also be attributed, but tax dollars are what convince most Senators.
The launching of New York sportsbooks has been a huge success, with it clear that sports betting is here to stay in one of the biggest markets that the nation has to offer. They have opened with a 51% tax rate on all sports betting revenue, but that could be set to change after next year.
State Senator Joseph P. Addabbo Jr. will be looking to form a roundtable to discuss the tax rate ahead of next year’s legislative session. He is currently is the char of the Senate Committee on the Racing, Gaming and Wagering Committee and told Gambling.com that “it is definitely a conversation to have,” when asked about the New York tax rate.
There were nine mobile bookmakers that were officially approved to operate within the state and those have proven to be a roaring success so far. Eight launched on January 8, while BallyBet has also been given the green light to begin operations once they are ready to launch.
From the eight active state-based sports betting sites that launched at the beginning of 2022, there has been more than $270 million generated in tax revenue.
That has come directly as a result of the 51% tax rate that was agreed upon, although Addabbo has said he wants to get to the end of the upcoming NFL season before debating a potential change to the rate.
A legislative session that began in January included a push for there to be a reduction in the tax rate whilst also letting more bookmakers open up in the state. Though it was unsuccessful on that occasion, there is hope that it could be brought back to the Senate soon.