The New York sports betting launch has been a major success in 2022 and will continue the trend in 2023. However, many sportsbooks have expressed their concerns about maintaining profits in the state, and operators cannot use promotional credit deductions compared to the luxury given in other states across the country.
Why Lowering the Number is a Difficult Argument to Make?
The monthly revenue generated in the state in the form of tax receipts goes towards funding education and youth sports programs across the Empire State. Any immediate change could affect the funding drastically, as a lower tax rate would most likely generate less revenue.
Sen. Joseph Addabbo believes that a credible argument will have to be made for the gesture to even be considered. Sen. Addabbo chairs the state Senate’s Racing, Gaming, and Wagering Committee, and commented on the issue.
Convincing the state legislators will be a difficult task, especially during the legislative session. Trying to convince them that a lower tax rate wouldn’t affect the revenue going towards these programs will be a challenge on its own.
The state is home to nine online sportsbook operators that accepted over $16.59 billion in wagers in 2022. Based on the numbers, $709.2 million was generated through taxes due to the 51 percent tax rate. The Empire State has the biggest sports betting market in the country, as Texas will discuss the opportunity of adding legalized sports betting within its borders in 2023.
Efforts Will Be Made But It Will Be a Waiting Game
During last year’s legislative session, the thought of adding more sportsbook operators in the state was shut down relatively quickly. Sen Addabbo stated, “It’s going to be a hard argument,” he said. “We’re already No. 1 in the nation with only nine operators.”
In the past, he mentioned that the sportsbook operators knew beforehand what they were getting into when these bookmakers fought to gain a bid and ultimately a license in the state. Any sudden changes would most likely lead to negative results.
Instead, there are a couple of measures that could be taken to appease the business struggles. More betting options could be added to these platforms, which were previously prohibited, which includes betting on the Heisman trophy winner.
The next approach could result in adding an iGaming market as neighboring states like New Jersey and Pennsylvania have flourished in the sector. There are four commercial casinos in upstate New York and several tribal casinos. The licensing process for three Las Vegas-style commercial casinos is underway in New York City, which could include Long Island.
This venture would allow bettors the opportunity to play games on their mobile devices. The types of games include online slots and casino table games such as craps and blackjack. So far, six states offer that, while the six including Nevada offer poker in the United States.