Sen. Addabbo and A. Pretlow File Sports Betting Bills to New York
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Wednesday morning, Gov. Andrew Cuomo shocked the sports betting industry by announcing he was on board to move forward with mobile wagering in the Empire State. New York bettors rejoiced and sports betting stocks soared as the Governor finally decided to act on online betting.
Thursday night, Senator Joseph Addabbo and Assemblyman Gary Pretlow filed s1183 and a1257 into the Senate and Assembly. The two New York lawmakers have been at the forefront to legalize online sports betting since the state launched in-person betting in July 2019.
Now, they have a chance to get their bill through the state to create the online betting industry. The bill that Addabbo and Pretlow are filing is similar to one they filed in the past. With Cuomo now on board, it has a legit chance to be reviewed and potentially passed.
This is still easier said than done as Cuomo said that he wants to use a lottery-based system instead of a casino-based one. Addabbo and Pretlow have filed for a casino-based mobile betting industry.
Details of the s1183 and a1257
The sports betting bill, s1183 and 1257, were filed to both the Senate and the Assembly. The bill is similar to what Addabbo and Pretlow have filed in 2019 and 2020 with a casino-based betting industry in New York.
Under the bills, the state would require online betting operators to pay a one-time $12 million fee. The state would tax sportsbook at 12% of gaming revenue it collects and leaves aside 5% for gambling addiction help.
s1183 and a1257 will also require official league data for in-game bets and have a royalty fee of 0.2%. The hold sportsbooks will be required has not been discussed yet, but it could be close to 10%, similar to other states. Also, the bills mentioned having betting kiosks at off-track betting sites as well as horse racing tracks.
The bill stated that a conservative revenue number would be $79 million annually, which is a long way from Sen. Addabbo, stating that revenue could hit $200 million in a mature market.
Cuomo Has Other Plans
Wednesday afternoon, Gov. Cuomo announced that he wanted to run the online betting industry through the lottery system instead of the casino. Cuomo’s initial plan is to use one sports betting operator to help the state collect more revenue for itself.
The Empire State faces a $50 billion budget deficit, and Cuomo is looking for ways to patch the hole quickly. However, it tries to rush too quickly. New York might find itself getting a headache with a lottery-backed betting industry.
A lottery-backed system could greatly damage the industry in the long-term. Washington, D.C., and Oregon are Lottery-backed states and have struggled to grow based on this view. States that use the lottery as a provider compared to Tennessee, which oversees the industry, have struggled to grow organically.
There is no guarantee that the bills filed last night will be taken seriously, with Cuomo deadset on using the lottery. Lawmakers will have tough discussions in the coming months on the best way to launch New York online gaming.
