New York State is raking in the cash from online sports betting due to a high tax rate, but at least one lawmaker in Albany wants to crack down on “predatory” behavior from the likes of DraftKings, FanDuel, BetMGM, and PointsBet, among others.
New York State Sen. Pete Harckham on Nov. 30 filed Senate Bill S9605 to try to minimize gambling-related harm caused by the regulated sportsbooks. The bill, just one page in its current form, states its aim:
“To promulgate rules and regulations regarding predatory sportsbook bonuses in mobile sports betting, including but not limited to, deposit matching, risk free betting, free money, free bets, site credits and profit boosts.”
New York has seen as much as $1.6 billion bet online in a single month since online sports betting kicked off in January 2022, causing alarm for many responsible betting advocates. Sports betting legalization was bipartisan in New York.
Governor Kathy Hochul said in early November that since early January, when mobile sports wagering became available in New York, the state has collected $542 million in taxes through the end of October. An additional $200 million in licensing fees had also been collected, generating a total of more than $740 million in revenue.
“By bringing sports wagering to New York, we have not only opened the door to responsible entertainment for millions of sports fans, but we have also brought in significant revenue to support schools, as well as youth sports, while implementing important safeguards to help those who need it,” Governor Hochul said.
“I’m proud of the work that has been done to secure our state’s top position in mobile sports wagering, and I am excited to continue the trend as we secure hundreds of millions of dollars to support programs that will improve the lives of New Yorkers.”
State Senator Joseph P. Addabbo, Jr., who led legalization efforts in the legislature, called the tax haul “an incredible achievement.”
According to a statement from Gov. Hochul, GeoComply, a software firm used by sportsbooks to ensure geolocation requirements, reported that more than 11.3 million unique player accounts have been created since January, conducting nearly 985 million transactions.