The NFL is in full flow and even though the Pittsburgh Steelers' season is over, fans may still be wanting to place wagers on the remaining big game. Sports betting sites in New York are breaking revenue figures in recent months. However, the wait for legal NY online casinos continues.
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A plethora of Steelers fans wave the infamous Terrible Towel during a home football game in Pittsburgh, PA.
December 2023 saw the state of New York achieve its highest ever monthly figure for online sports betting. A total of $188.3 million revenue was recorded which beat the previous highest revenue figure by $22 million. It was also 32.8% higher than the figure recorded in December 2022. That’s impressive as that month included a soccer World Cup taking place.
The handle for December was $2.05 billion and that was just short of the record $2.11 billion seen in the previous month. The $2.05 billion recorded was 25.7% higher than in December 2022. It was the third consecutive month in which the betting handle went through the $2 billion mark.
The record monthly figure was achieved despite bad news for BallyBet and Wynn Interactive who both recorded losses with over half a million dollars being lost..
January and February 2024 are also expected to see bumper results for New York. It’s all good news for the betting companies, but also the state who will be receiving millions in gambling tax revenue.
October of last year saw new rules be introduced in New York. This saw the New York State Gaming Commission (NYSGC) make the advertising of sports betting close to universities and colleges illegal.
This move was taken by the NYSGC because they felt that advertising betting sites in such areas was an “objectionable marketing effort.” Introducing the ban on this will prevent marketing which they believe is “predatory.”
While it is legal to go online in New York and legally place sports bets, it’s not the same for those who want to play casino games. Online casinos are yet to be made legal in the state of New York.
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Having seen the revenue figures and tax receipts that are coming from sports betting, there are moves to make online casinos legal in New York. They must look enviously at the amounts being earned in neighboring New Jersey.
Senator Joe Addabo is the chair of the State Senate Gaming Committee He’s attempting to make online casinos legal. January 2024 has seen him introduce his Interactive Gaming Bill. This has the aim of allowing 24 licenses to be granted to companies wishing to set up online casinos in New York.
Steelers Fans Affected In PA
Addabo says that there has been “a lot of input from a lot of individuals” but knows that more discussions are needed if it is to become law. He believes that if passed, iGaming and iLottery will produce around $1 billion every year. The Senator stressed that gamblers are already placing their bets in neighboring states such as Pennsylvania and New Jersey but New York receives nothing.
A proposed 30.5% tax rate and $2 million licensing fee, Addabbo believes it could be part of the solution to projected deficits the state faces, not just this year, but in the future.
If this does happen, then the proposed tax rate will be 30.5%. The bill also proposes that there will be licensing fees put in place that range between $2 million and $10 million. Those able to apply for licenses include tribal casinos, racetracks and licensed sports betting sites.
There have been previous attempts to legalize online casinos in New York. The others have of course failed to become law. This current attempt includes clauses that will boost employment in the state. A position such as a live dealer would be a union job and this being so would see more rights for those who fill the vacancies.
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The bill also includes provisions for responsible gambling. 0.025% of tax revenue that is received by the state in a fiscal year (at least $25 million) would be used to fund responsible gaming trading and employee training. There would also be a requirement to contact customers who deposit at least $2,500.
After such a long wait for legalization, the bill aims to have a swift launch date if passed. Will it become law though? At present the bill is at the committee stage so there is a long way to go before a final vote on it.
