New York proposes online casino business

Yesterday, New York Senator Joe Addabbo proposed to take a big bite out of The Big Apple online sports book operators’ tax woes when he introduced iGaming Bill S4865 during a joint hearing. If passed, this bill would only tax the Empire City’s nine sports wagering operators at a 30.5% tax rate as opposed to the 51% state tax they’re being hit with for mobile sports betting.

In addition to the lesser tax rate, the bill would also offer one license per operator for each of the state’s nine sports wagering operators of 10 years to conduct slots, table games, and live-dealer games provided the live-dealer studios are in state. The initial licensing fee for each operator would be $2 million; however, it would cost $10 if an operator was renting under its own brand from another license.

And despite the fact that the bill didn’t make it onto Governor Kathy Hochul’s executive budget proposal for Fiscal Year 2023, that won’t stop FanDuel, DraftKings, Caesars Sportsbook, BetMGM, BetRivers Online, PointsBet USA, BallyBet, WynnBET, and Resorts World Bet to push for it in future years as it will not only benefit their profitability, but also the revenue for the State of New York.

“As you heard from Spectrum, their projections show the legal iGaming market here in New York would generate $2.3 to $3.1 billion in GGR in year one and $3.6 to $4.3 billion in GGR in year five,” said DraftKings CEO Jason Robbins during his hearing testimony. “Results have shown that iGaming’s success can come without cannibalizing existing retail gaming operators or the lottery, and certainly without experiencing the hyperbolic, doomsday scenarios that many opponents recklessly predict.”