Mobile Sports Betting Fails to Make New York Budget

Although New York Senator, Joseph Addabbo, tried with all his effort to include mobile sports betting in the state budget for 2020, it, unfortunately, didn’t happen.

On the recent meeting of the New York lawmakers, they decided to leave out mobile sports betting from the FY 2020 budget plan…

…but nevertheless, they included a number of reforms and initiatives for other verticals of gambling in the state.

Approved and agreed by New York Governor, Andrew Cuomo, and other legislative leaders, the budget was established that way to set out spending plans for $175.5 billion for the next 12 months.

New Plans for NY

The state plans on moving forward with the plans to legalize in-person sports wagering with some preliminary talks on meetings held back in January. Later, during the same month, an initial list of sports betting regulations for the NYC market was published as well.

Governor Cuomo has been extremely against mobile wagering. He also argued that the amendment to the 2013 law that permits the establishment of four new casinos in the state…

…has helped the launch of land-based sports wagering, but that it doesn’t permit placing bets online.

He also mentioned that the constitutional amendment is necessary for the launch and that it should be put to voters for the approval.

So, now the lawmakers have until June, which is the end of the legislative session, to push even more if they want to see legal online and mobile wagering in New York.

Senator Addabbo has already filed bill, S00017m which sets out an 8.5% gross revenue tax rate and which is currently being scrutinized by the Senate Racing, Gaming, and Wagering Committee.

A Word from the Governor

“From the beginning, I said we will not do a budget that fails to address three major issues that have evaded this state for decades – the permanent property tax cap, criminal justice reform and a Metropolitan Transportation Authority overhaul, including Central Business District Tolling,” Cuomo said of the budget.

“I also said this budget must be done right – meaning it must be fiscally responsible and protect New York from the federal government’s ongoing economic assault on our state. I am proud to announce that together, we got it done,” he added.

Details on the Budget

In the budget plan, there are also intentions to enhance other parts of the legal gambling market of the state. For now, it is limited only to land-based casino betting…

…and betting on horse racing.

The budget fixes the pari-mutuel tax rate for five years and simplifies the commission structure for video lottery gaming in the state.

It is also setting a cap on casinos offering free-play games to customers at 19% of the venue’s revenue. This, however, will fall to 15% from 2024.

Source:

“Mobile sports betting fails to make New York budget”, igamingbusiness.com, April 2, 2019.