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While other states in the country are exploring opportunities to increase tax rates and control the fast-growing online sports betting market, a New York lawmaker is advocating for expansion with plans to reduce the state’s tax rate.
Chair of the Assembly Racing and Wagering Committee, Assemblywoman Carrie Woerner, introduced A6013 to the New York State Assembly last Tuesday (Feb 25). The new legislation would allow for more online sports betting licenses in the Empire State, with the tax rate reducing with every new entrance into the market. Currently, New York online betting operators pay a 51% tax rate, which is the highest in the country.
What Does the Legislation Say?
Woerner’s proposal shares similar wording with a bill introduced by Sen. Joseph P. Addabbo, Jr. in 2023. The state currently has 9 active sportsbooks, but the new legislation is hoping to increase the number to 16.
It plans to have at least 14 sportsbooks live by Jan. 31 2026, and 16 by Jan. 31 2027. The New York State Gaming Commission will continue to oversee the licensing process, accepting applications publicly and granting licenses. The online operators would need to pay $50 million for their license, while the platform providers are required to pay a $25 million licensing fee.
The tax rate would be determined by the number of active operators in the market. With one to three new platforms licensed, the rate would decrease slightly to 50%. If one or two more enter, raising the total to 13 or 14 operators, the rate would drop further to 35%. Any additional entries would see the rate decline to 25%, which is less than half of the current 51% rate.
New York is already home to some of the biggest sportsbooks in the country, including Bally Bet, BetMGM, BetRivers, Caesars, DraftKings, ESPN Bet, Fanatics, FanDuel, and Resorts World Bet.
New York Still the Most Profitable Market
Since legalizing sports betting in 2022, New York has grown rapidly to become the most profitable in the country. Over $61 billion has been wagered since the market opened, with a record-breaking $22.6 billion in 2024.
It also became the first state to pull in $1 billion in taxes from sports betting and crossed the $2 billion mark in 2024. Compare that to New Jersey, which has only managed a little over $500 million despite legalizing sports betting much earlier. New Jersey Governor Phil Murphy recently announced a proposal to almost double the state’s gaming tax from 13% to 25%.
Online Casinos on the Cards?
While the new legislation is expected to reduce state revenues, at least in the first year, Addabbo, in an interview earlier this year, proposed the legalization of online casinos as a sustainable revenue source.
Woerner also spoke to the local media this month about the Assembly’s plan to discuss online casinos this session but warned that the issue might be too serious for just a single session.
“I think in the Assembly we’ll be taking a look at it, but I would not think that we’re ready to take that step yet,” she told City & State New York. “There’s a lot to look at. I know it’s out there and under consideration, and I’ll certainly take a hard look at it. We’ll see.”
Woerner also clarified in the interview that no operator had approached her about lowering the state’s tax rates.
Source: YogoNet
