New York seeks to lower 51% tax rate imposed on sports betting
April 14, 2022
Three months after mobile sports betting launched, New York has quickly become one of the massive sports betting markets in the U.S.
However, the Empire State is also carrying a huge tax rate applied on its sports betting, with the current policy imposing 51% of the tax rate on sportsbooks operating in the Big Apple.
The fact is, with that amount of tax rate, New York is the holder of the largest sports betting tax rate in the country. In comparison, Tennessee has 20%, Colorado 10%, and Michigan 8.4% of the tax rate applied on sports betting.
The current status is not entirely accepted, as the New York lawmakers are working out a bill to amend the 51% tax rate on sports betting.
The A08658 bill was mainly backed by Assemblyman Gary Pretlow and Senator Jon Addabbo, who believed a lower tax rate would do more benefit the sports betting market in New York.
With the whooping tax rate lowered, the intention is to create varied betting options in New York, with more sportsbook operators coming to the state. The tax rate is likely to affect the generosity of sportsbook promos in New York.
Additionally, the bill would add other sports to bet on, including fixed-odds horse racing and NASCAR races.
Pretlow and Addabbo’s side will have the final session on June 2, 2022, to see whether their game-changer bill manages to pass.
However, some observers see the bill as an unlikely chance to cut through, given the majority of lawmakers are content with the sports betting system in motion.
Aside from it, New York seems to thrive with the current regulation as the state has seen $163,614,689 in taxes with the applied 51% rate.
With that tally, it is possible that New York wouldn't even discuss the changing of the 51% tax rate of sports betting.
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