Cellular NY sports activities betting payments in movement as committees approve
The NEW Proposal for sports betting that some legislators seem to prefer Governor Andrew CuomoThe state model is supported in both chambers.
The New York senate elected S 1183 from the committee on Tuesday. The Assembly followed the example and voted A 1257 from the committee on Wednesday.
Several members of the congregation expressed enthusiastic support, both from themselves and from their constituents. Rep. Jeff Gallahan said a back casino, from the lakeis “ecstatic”.
“You are thrilled that this bill was tabled because it is much better than what you saw from the governor, and I couldn’t agree more,” said Gallahan.
Cuomo, of course, announced that he wanted a lottery format for New York sports betting. This can be the case for one or more operators selected through an RFP process.
Details of the NY sports betting bill
The legislative proposal, sponsored primarily by Rep. Gary Pretlow and Sen. Joe Addabbo Jr.has these properties:
- The bill allows the state four full commercial casinos and three tribal operators work with two mobile sports betting everyone. That would mean up 14th Sports betting providers in New York even before future downstate casinos are considered.
- Every online sports betting provider would have to pay once $ 12 million Fee. That could be the same $ 168 million in state revenue before someone makes a bet when all 14 licenses are in use. The upfront money could help move lawmakers to a yes vote.
- Professional sports stadiums and Off-track betting options may work with a casino to host betting kiosks.
- Income from sports betting would also be taxed 8.5% for retail bets and 12% for online betting. Five percent From this tax revenue they flow into problematic gambling programs – unfortunately more on that in the negative area.
- Online registration is allowed.
Should the proposal become law, Pretlow does not intend to have the Gambling Commission set up like it does with sports betting in retail.
“I think this is so popular that it is being pressured by numerous individuals across the state to speed regulation,” said Pretlow. “Because they could start writing regulations right away if they wanted.
“I’m pretty sure we’re going to put pressure on them to do something much faster than with sports betting, which took over a year to launch.”
Pretlow expected how much grip?
One MP was brought up New JerseyThe success of sports betting that put Pretlow on a tangent:
“Thirty percent of the numbers Jersey comes up with are New York numbers,” said Pretlow. “According to its own statements, it is most likely more. New York State is two and a half times the size of New Jersey, so we’ll at least double.
“Right now they’re making a billion dollars a month for the past month. A billion dollars, 12 billion dollars a year. We’ll do at least double that. So we’re making $ 2 billion a month, or $ 2.5 billion a month. I think all of our expectations will be met. “
Pretlow was right to say that NJ sports betting raised $ 1 billion last month, but the $ 12 billion A year mark is imprecise. New Jersey ended 2020 with 6 billion dollars under control.
It’s also terribly bullish to expect $ 2 billion to $ 2.5 billion to bet every month, especially at startup.
The handle is a bit higher than Cuomo’s expectations
Pretlow’s assumed market size is slightly larger than what the governor expects from his monopoly model. Cuomo expected $ 500 million in annual revenue from its state model compared to $ 50 million from an open model. Based on traditional 5% hold, adopts Cuomo’s model $ 20 billion under control every year.
That $ 500 million would of course take time. The budget for fiscal year 2022 proposes $ 49 million in sales with a rapid ramp-up $ 357 million in fiscal year 2023 $ 465 million in fiscal year 2024 and $ 493 million in the 2025 financial year.
While there is no tax bill for Pretlow’s bill, we can get closer to the likely estimates. Hold with 5% and 90% of bets that come online that $ 24 billion to $ 30 billion expected in the handle Pretlow would generate $ 1.2 billion to $ 1.5 billion in operator revenue.
That would suggest between $ 139.8 million and $ 174.8 million in annual tax revenue under Pretlow’s plan. That’s certainly better than $ 50 million a year, but may not be close enough to Cuomo’s pipe dream to endorse the proposal.
The leagues should be delighted with the New York sports betting bill
There are a couple of issues in the bill, including a double-dip for sports leagues.
Along with the requirement official league dates Operators also have to pay for live bets 0.2% of the grip placed on a particular sport on the governing body of that sport as Integrity fee for the leagues.
Pretlow, who has long been demanding an integrity fee, reiterated the reasoning the leagues have tried to pass on to lawmakers since the end of PASPA.
“There’s a little bit that we take from the bookmaker and give to the leagues and overseers of the sport like the NFL, the PGA,” Pretlow said. “This money will be used for them to better monitor player activity.”
Elsewhere in NY sports betting bill
There are a few other potential problems against the Pretlow and Addabbo proposal.
The Bill takes a cold stance on problem gambling for everyone 30 or older. Problem gambling programs from the NY State Gaming Commission will develop programs to “address problematic games by users under 30”.
The Annual Problem Gambling Report will also include “An Assessment of Problem Gambling Among Those Under 30”.
There is also no mention that the unused three downstate casino licenses will be accelerated. The four casinos in the hinterland were given a head start that is set to end 2023 However, there have been attempts to move this date up.
These licenses could go $ 500 million apiece to help the state resolve immediate budget issues and add six more licenses for mobile sports betting.
Cuomo’s budget includes a request for information from companies interested in these licenses.