On Sunday evening, the New York State Assembly’s lower chamber released its 2021-22 budget proposal. What’s interesting is that one of the entries in the plan focuses on mobile betting.
This is the first time such a thing has happened in the Empire State. Many see it as a clear sign that the legalization of online betting in New York is imminent.
Details of the New York Sports Betting Proposal
The proposal is very similar to the one cleared by the Racing and Wagering Committee on January 20. The A 1257 bill, as it’s called, outlined the rules the online betting industry would have to adhere to if such an activity was to be made legal in New York.
Some of the most important details specified in the bill included the following:
- Established gaming businesses in New York (three tribal and four commercial casinos) would be allowed and no more than two mobile skins.
- Each operator would have to pay a $12 million licensing fee.
- The tax rate for mobile sportsbooks would be 12%.
Interestingly, the mobile betting section from the 2021-22 budget plan differs in several aspects from the one proposed by NY Governor Andrew Cuomo. His stance remains that the only acceptable solution for mobile betting in New York would be a monopoly model.
Cuomo and his team believe that with a single state-run mobile sportsbook, the state would maximize the revenue. The numbers from other states suggest that his claim is not correct.
Furthermore, as stated in the budget proposal, New York would be getting hundreds of millions every year if the open-market model was implemented. In fact, the proposal came with a fiscal projection of $180m in 2022, $86m in 2023, and so on.
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