The New York Gaming Commission is due to meet on Monday, January 28 in a bid to discuss the future of the sports betting industry in full. As lawmakers are preparing for a busy Monday, Legal Sports Report has acquired an actual draft of some of the proposed reuglation ahead of the meeting.
New York Hurrying Up to Hit the Sports Betting Gold Vein
Sports betting laws in New York State have been active since 2013. However, the state has never actually achieved a status of a fully-licensed place for casinos and sportsbooks to operate unrestrictedly. This is precisely what the New York Gaming Commission (NYGC) is going to discuss on Monday, January 28.
Go back to 2013, when the Empire State passed a law allowing upstate casinos & tribal compacts to start offering sports bets, and you get the biggest success of the state in breaking the somewhat restrictive regulatory climate.
The meeting on Monday, though, aims to create a broader reach forthe industry, allowing operators to expand and possibly top off their land-based assets with online & mobile betting options.
At the beginning of 2019, Senator Joseph Addabbo pre-filed a bill that was intended at liberalizing the entire marker, across all relevant and important segments, including sports betting, poker, and casinos – both online and offline.
NY Gov. Andrew Cuomo has publicly endorsed the gaming industry in a bid to close a $3.1 billion budget hole. Mr. Cuomo’s actions are not at all surprising, with nearly all states that have so far liberalized their industries – or considering to do so – having cited the benefits to the state’s budget.
The (Possible) Sports Betting Rules in New York
The document entitled 5329 and obtained by Legal Sports Report, covers 36 essential points to legalizing the industry, starting with licensing and going through the legal definition of the activity as well as such essentials as placing wagers, the type of bets, how bets can be cancelled, and understandably – taxation.
To legalize their activities, casinos will have to comply with an earlier piece of legislation (unless otherwise stated) called Racing, Pari-Mutuel Wagering and Breeding Law section
Only licensed casinos in good standing shall be eligible to obtain a sports pool license.
In order to renew a license, a casino would need fiscal stability, integrity and responsibility. Operators would be obliged to submit a full report every five years, including:
- A list of each jurisdiction in which such operator or a sports pool vendor with which such operator has been authorized to operate;
- All regulatory infractions, discipline or other sanctions that have been imposed on such operator;
- Whether the operator or sports pool vendor has operated sports pools in any jurisdiction within the prior five years in an unauthorized manner or has been accused of doing so;
- Whether the operator or sports pool vendor has committed any misconduct or engaged in any improper associations;
- The annual financial statements audited according to generally accepted accounting principles, of the sports pool vendor, if any, for the prior three years
Taxing NY Sports Betting
Draft 5329 contains very little when it comes to taxation, although the bill states that taxes will be calculated based on Gross Gaming Revenue (GGR) and that such payments will be transferred electronically to the commission, similarly to other places.
In Virginia, lawmakers have been trying to introduce a founding sports betting bill since last year in the least. According to Virginia’s latest piece of proposed legislation, taxes need to be paid weekly to the commission.
No precise figures have been cited in the bill, giving the New York Gaming Commission time to look into what an appropriate rate would be. Overall, rates have varied between 8% and 15% and up so far.
More information will be available on Monday when the NY Gaming Commission convenes and announces its decisions.