New York Senator Joseph P. Addabbo Jr. is looking to capitalize on the recent success of the Empire State’s newly regulated mobile sports betting market. Last Thursday, the senator introduced Bill S8412 to the New York Senate, which would legalize iGaming offerings in the state, and thus further expand the local gaming market to new heights.
The state officially launched its online sports betting regime at the beginning of January 2022, and the market is already surpassing all kinds of records. According to reports, for the first month of operations, the market has generated more than US$2 billion in total handle, and the senator believes an iGaming one would also benefit the state.
Bill S8412
After being a major advocate of mobile sports betting, Mr. Addabbo has big plans for the New York State’s gaming industry and its iGaming sector in particular. His Bill S8412 would allow for licensed casinos and gaming operators to offer certain iGaming products online on their platforms for the local population. According to the bill, it would include online slots and table games.
In contrast to the online sports wagering tax rate of 51% for operators, the iGaming tax rate proposed by the senator is valued at 25%. This makes it much more lucrative for operators who would like to join in. The bill also specifically indicated that promotional gaming credit will not be taxable for the purposes of determining interactive gaming gross revenue.
The bill’s summary predicts that the Empire State would be able to generate approximately US$475 million in state tax revenue every year from the legalization. In the first year, the state would bag around US$150 million in one-time licenses fees from casinos, operators, and independent contractors, that wish to operate in the iGaming sector.
In addition to that, the bill states that each casino and gaming operator would be required to pay a one-time fee of US$2 million. While independent contractors will have to use operators’ iGaming platforms and pay a one-time fee of US$10 million. Following the success of the mobile sports betting market, the state believes that it would be able to become a leader in iGaming too.
Breaking Sports Betting Records
According to the latest reports from the New York State Gaming Commission, the total handle for mobile sports betting has now reached an impressive US$2.4 billion. This is for the period from January 8, 2022, through the week that concluded on February 13, 2022, which was also the Super Bowl weekend. Estimations indicated that so far, the state has collected over US$78.5 million in revenue for the first five weeks.
Downstate Licenses
Besides its online gaming industry, New York is also looking to expand and improve its land-based one as well. Last week, New York State Senate amended a bill that outlines the selection criteria for the ideal candidates for the three downstate full-casino licenses. The senate informed that the New York State Gaming Commission will be tasked with determining a suitable tax rate for operators.
