Bill That Would Set NY Sports Betting Limits Introduced In Legislature
One of the nation’s largest legal sports betting markets could see its potential severely dampened in the coming months due to $5,000 daily NY sports betting limits.
New York Assemblymember Robert Carroll has introduced a bill, A7962, to cap daily wagering and deposit limits for bettors in the Empire State. It would also tighten advertisement restrictions related to New York sports betting.
The bill will now go to the Assembly Racing and Wagering Committee, and if it passes, it will reach the Assembly floor for a vote. If the Assembly passes the bill, it will repeat the same process in the Senate before heading to Gov. Kathy Hochul’s desk to be signed into law.
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New Limits for Bettors and Sportsbooks
Carroll’s bill seeks to amend New York’s sports betting laws and restrict bettors and sportsbook operators alike.
For bettors, here is what the bill would do:
- Institute a $5,000 cap on the total wagers by one bettor at any one licensed sportsbook in a 24-hour period.
- Prohibit bettors from making more than five deposits in a 24-hour period.
For online sportsbook operators, the bill would do the following:
- Ban sportsbooks from using several terms in their advertisements, including “bonus,” “no sweat,” “bonus bet,” and any other similar verbiage.
- Restrict advertising hours: Sportsbooks could not run ads between 8 a.m. and 10 p.m. or during any live sporting events.
- Prevent sportsbooks from providing information on how to place a wager or how sports betting works.
Broader Implications on the Future of Nationwide Betting Limits
Given New York’s size and influence in legal sports betting, its policies could influence other markets looking for direction in an ever-evolving industry. If New York institutes a wagering cap, other states are likely to follow suit.
A similar situation is already transpiring with taxes. The Empire State’s 51% sports betting tax rate is the highest in the nation, along with New Hampshire and Rhode Island, while many other states tax books at 10% to 20% of their revenue.
New York online sportsbooks went live in 2022 and quickly began setting and blowing away records in handle and revenue. Of course, that resulted in unparalleled tax revenue — more than $2.9 billion lifetime to date.
Now, other states are looking to raise sports betting taxes and get a larger piece of the pie from their sportsbook operators.
Although these policies may take years to take effect, at least seven states have begun discussions during their legislative sessions: Indiana, Louisiana, Maryland, Massachusetts, New Jersey, North Carolina, and Ohio. Ohio Gov. Mike DeWine already doubled the tax rate to 20% in 2023, the Buckeye State’s first year with legal sports betting, before more recently attempting to double it again to 40%.
Other Efforts to Restrict Sports Betting Already Underway
Several lawmakers share Carroll’s sentiments regarding the need to limit bettors’ access to sports betting.
Massachusetts Sen. John Keenan introduced legislation in January to raise taxes to 51% from 20% and impose even stricter restrictions on wager limits and advertisements. Connecticut lawmakers also filed similar bills in March.
Additionally, the SAFE Bet Act, introduced by Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT), looks to implement industry-wide changes at the federal level. These changes would establish stricter enforcement of multiple sports betting areas:
- Responsible gambling standards and efforts, including adding resources and funding to mental health and other related studies.
- Prohibiting college prop bets and wagers on college athletes.
- Sports betting advertisement restrictions.
- Banning artificial intelligence in sports betting.
