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NY State Assembly proposes licence system for mobile wagering

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The New York State Assembly has published its 2021-22 Budget Proposal, which includes a licensing fee and tax structure, as well as projections for the fiscal impact of the legalization of mobile sports wagering in the state.

The proposal sets out changes to the state’s existing gambling laws, and modifies a proposal from Governor Andrew Cuomo by replacing its centralized procurement model with an alternative structure operating through existing land-based casinos in the state.

It sets out a licensing fee of $12m for each participating platform, and a 12% tax on gross gaming revenue (GGR).

The budget proposal shows a projected fiscal impact of the legalization of mobile sports wagering of $180m in 2022, $86m in 2023, $112m in 2024 and $118m in 2025.

It also sets out a modification to the restriction on lottery draw game offerings, proposing to eliminate a current law restriction which limits the number of daily offerings of Pick 19, Take 5, Lotto and future lottery games to a single daily offering.

Instead, under the new proposal, the games will be authorized to take place no more than twice daily.

The modification of the restrictions on lottery draw game offerings has a projected fiscal impact of $7m in 2022, and a further $9m in each of the following three years.

The Assembly has also modified the executive proposal to consolidate the function of the Gaming Inspector General under the authority of the Office of the State Inspector General, to require a report on the activities of the office.

The modification also includes a requirement for additional protections for civil service employees, and removes proposed changes relating to statements made by commission officers or employees of the Gaming Inspector General.

A further change reported saw the assembly accept an executive proposal to extend the current pari-mutuel tax rate structure, and other racing-related provisions, for a period of one year.

New York governor Andrew Cuomo laid out his plan for mobile sports betting in January, with a proposal that would see the state lottery issue a request for proposals for online betting operators, but could permit multiple brands to launch in conjunction with the state lottery.

Cuomo, who was a long-time opponent of legal online betting, changed his position on the matter earlier this year with hopes to increase tax revenue in the state to aid economic recovery from the novel coronavirus (Covid-19) pandemic.