New York lawmaker proposes sports betting expansion, lower tax rate for operators

A bill introduced in the New York State Assembly aims to expand the number of online sports betting operators while reducing the state's current 51% tax rate, currently the highest in the nation, to as little as 25%.

Assemblywoman Carrie Woerner (D-113) introduced A6013, which would allow up to 16 online sports betting licenses and gradually lower the tax rate depending on the number of operators in the market. There currently are nine licenses available.

The proposal mirrors a similar bill introduced in 2023 by Sen. Joseph P. Addabbo, Jr. (D-15). Under the plan, the number of online sportsbooks in New York would increase to 14 by January 31, 2026, and 16 by January 31, 2027.

The New York State Gaming Commission would oversee the licensing process, accepting applications publicly and granting new licenses on a rolling basis to streamline the process and optimize state revenue.

As part of the proposal, platform providers would be required to pay a $25 million licensing fee, while online sports betting operators would need to pay $50 million for a license. The tax rate, currently set at 51%, would be reduced based on the total number of operators in the market.

If 10 to 12 operators are licensed, the tax rate would drop to 50%. If 13 to 14 operators are licensed, the rate would decline to 35%, and if 15 or more operators are active, the tax rate would fall to 25%.

New York's sports betting market has consistently grown since its launch and is the most profitable in the country. The state recorded $22.6 billion in online sports betting handle in 2024, surpassing the previous record of $19.1 billion in 2023. Gross gaming revenues also increased, reaching $2.04 billion in 2024, a 20.9% rise from the $1.68 billion reported the previous year.

Additionally, New York’s tax revenue from online sports betting exceeded $1 billion for the first time in 2024, reaching $1.04 billion, reflecting a 21% increase from 2023’s total of $861.8 million.