Another bill introduced to legalize iGaming in New York may help soothe operator frustrations while the fight over New York’s online sports betting tax rate continues.
The new bill, introduced by Sen. Joseph P. Addabbo Jr., includes slots, table games, and live dealer games but does not include poker. In most states, iGaming taxes range from 15% to 18%, but this bill suggests a 30.5% rate.
Gaming operators look forward to iGaming offerings
Currently, nine license holders hold online sports betting licenses, which would be allowed to have iGaming licenses under the bill. New York casinos, racinos, and tribes can also hold iGaming licenses due to the bill. The license fee for each permit is $2 million and is valid for 10 years.
Jason Robins, CEO of DraftKings, and Christian Genetski, president of FanDuel, testified before the Senate Standing Committee on Racing, Gaming, and Wagering, supporting a lower rate than the current 51% tax rate on online sports betting. Aside from boosting operator revenue and taxes, Robins and Genetski emphasized the need for New York lawmakers to legalize iGaming.
While the bill has been introduced, it faces an uphill battle against passage. The state’s executive budget proposal for Fiscal Year 2024 does not mention iGaming provisions or plans.
Three more licenses are available
There will be a competitive bidding process to award operators three additional online iGaming licenses. That will allow operators who missed out on online sports betting approvals to enter the New York market. A permit will be available to these independent contractors for $10 million if approved.
The New York State Gaming Commission will regulate iGaming in the state. The gaming commission will accept bids and award licenses after competitive bidding, as with online sports betting licenses. New York iGaming licenses will not be available to operators in unregulated or offshore markets. Furthermore, the New York State Gaming Commission reserves the right to revoke a license granted to any licensed operator found to be engaging in unregulated or offshore iGaming markets.
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