New York Sports Betting Tax Revenue Could Eliminate US$2.3B Gaping Hole in 2020 Budget

New York could soon see the official launch of regulated sports betting, as the first months of this year have seen quite the development in this direction with the introduction of crucial bills. Now it is just a waiting game until state lawmakers vote and potentially greenlight them, but projections already swirl around. State Sen. Joseph Addabbo recently pointed out that sports betting launch in a regulated sector could positively affect 2020 state budget by filling a gaping US$2.3-billion gap.

Wagering on sports events has been a hot topic across New York now more than ever before, as May 2018 saw the official overturning of PASPA prohibiting betting on sports events. This gave each state the chance to work on their unique set of rules shaping future sports betting operation, with many of the still devising the regulations. The State of New York made an attempt at passing a similar proposed bill, but the timing was not right and further consideration was postponed until January 2019.

Wagering on Sports Events Could Soon Become Reality

Now it is time for action, as two separate bills with relatively similar contents were introduced and lawmakers already make projections about the future operation. Sen. Addabbo pointed out that gaming revenue generated via wagering on sports events would have a positive influence and make budget deficiencies a thing of the past. He stated that at this pivotal point more funds are welcome, as it could be recalled that Gov. Andrew Cuomo warned about another gap expected.

It could reach the US$3-billion mark, concerning all lawmakers seeking a fresh source of gaming revenue. In its current state, the sports betting bill mandates a 10-percent tax on gaming revenue generated via wagering on sports events. In the long run, this could result in more fuel to the budget in addition to previously discussed aspects, such as funding state education and benefitting the community via other projects and beautification work.

State Sen. Addabbo stated that this would be a winning move, as state taxpayers would not see a tax hike. The prospect of increasing taxes is not something New Yorkers would like to see in the future and the possibility could become unnecessary with sports betting legalized. Other arguments in support that Sen. Addabbo produced were the sales tax revenue, as well as the thousands of new job positions that would be created by sports betting regulation.

Problem Gambling Survey ahead of Launch

The four commercial casino venues that would launch sports wagering if a green light is given are Del Lago Resort, Tioga Downs, Rivers (Schenectady), and Resorts World Catskills. In addition to them, some tribal casino venues would also launch wagering operation. Once they open their wagering areas for the public, they would provide more locals with a steady income and reliable employment. Furthermore, Sen. Addabbo also pointed out the performance of New Jersey which is among the leaders in the field.

With its 8.5-percent tax, the state was able to bag around US$2.45 million in November, giving New York hope that it would too witness considerable figures in the long run. Projections are that the state could have the capacity to surpass Nevada when it comes to sports betting popularity. There are thousands of gaming enthusiasts currently enjoying illegal wagering on events and pouring their cash into the deep pockets of criminal organizations instead of boosting their community.

People have until the end of March to share their opinion on how sports betting in New York should look and feel. However, before the offering could launch, the Office of Alcoholism and Substance Abuse Services has to obtain the funding needed for a survey looking into New Yorkers’ gambling habits. The last time such problem gambling inspection of the field happened it was 2006. Since then the landscape has changed immensely, mandating a new one that would recalibrate efforts in protecting players’ mental health.

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