ALBANY, N.Y. (NEWS10)- The legalization of mobile sports betting has the potential to be a significant source of tax revenue to the state. Governor Andrew Cuomo said it could generate millions for education.
It’s part of Gov. Cuomo’s 2022 Executive Budget along with the legalization of recreational marijuana. He said the hope is that tax revenue from sports betting will be able to help with the estimated $15 billion budget shortfall from fiscal years 2020-2021.
“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis,” he said.
Gov. Cuomo briefly touched on how mobile sports betting might work once legalized in his State of the State address. It could be run similar to how the lottery is or run by casinos. The Governor said he favored the lottery model with the estimated $500 million in tax revenue going directly to the state.
Three scenarios were presented in a Gaming Market Study done by Spectrum Gaming Group for the New York State Gaming Commission, which would oversee mobile sports betting. The scenarios include digital and retail betting and a combination of the two with the inclusion of casinos run by Native American Tribes.
- Retail betting at N.Y.’s commercial and Native American casinos.
- Retail betting at N.Y.’s commercial and Native American casinos as well as video lottery terminal and off-track betting facilities.
- Retail betting at N.Y.’s commercial and Native American casinos as well as video lottery terminal and off-track betting facilities. Includes separate scenarios surrounding which Native American tribes/regions can offer mobile sports betting.
The Gaming Market Report assumes a 10% tax on mobile sports betting for all three scenarios. The highest tax revenue is estimated for scenario 3A, which includes expanded retail (non-Native American) and digital sports betting. They also said they expect sports betting tax revenue would stabilize three to five years after legislation implementation.
|Estimated tax revenue (millions)|
“This report provides a valuable tool for the Commission and policymakers to use as discussions continue on the future of the gaming industry in New York. This report should assist with making sound fiscal decisions,” said Commission spokesman Brad Maione.
Bipartisan legislation was introduced in early January that would give casinos the ability to provide online sports betting. The bill imposes an 8.5% tax that would have to be paid by casinos providing the service.