New York Senator Joseph P. Adabo Jr. seeks to capitalize on the recent success of Empire State’s newly regulated mobile sports betting market. Last Thursday, Sen. Bill S8412 was submitted to the New York Senate, which would legalize the state’s offering of iGaming, further expanding the local gaming market to a new level.
The state officially launched its online sports betting scheme in early January 2022, and the market is already beating all kinds of records. During the first month of operation, the market reportedly generated more than US$2 billion in total transactions, and the senator believes the iGaming scheme will benefit the state as well.
Mr. Adabo, who has become a major advocate for mobile sports betting, has big plans for New York’s gaming industry and especially the iGaming sector. His Bill S8412 would allow licensed casinos and game operators to offer certain iGaming products online for local residents. According to the bill, it will include online slots and table games.
Unlike the online sports betting tax rate of 51% of operators, the Senator’s proposed iGaming tax rate is valued at 25%, which is much more advantageous for operators who want to join. The bill also stated that it would not tax promotional game credits for the purpose of determining total revenue from interactive games.
According to the summary of the bill, Empire State is expected to generate about $475 million in state tax revenue annually due to legalization. In the first year, we will collect approximately $150 million in one-time licensing fees from casinos, operators and independent contractors.
The bill also charges casinos and game operators a one-off fee of US$2 million each, requiring independent contractors to use operators’ iGaming platforms and pay US$10 million in one-off fees, and the country could be a leader in the game as well, according to the success of the mobile sports betting market.
The total throughput of mobile sports betting is now at $2.4 billion, according to the latest report by the New York State Game Commission. This is from January 8, 2022 to the week ending February 13, 2022, the Super Bowl weekend. It is estimated that the state has generated more than $78.5 million in revenue over the five weeks to date.
In addition to the online gaming industry, New York is seeking to expand and improve the land-based gaming industry. Last week, the New York State Senate revised a bill that outlined the criteria for selecting ideal candidates for three Downstate Full Casino licenses. The Senate informed that the New York State Game Board would be tasked with determining the appropriate tax rate for the operator.
BY: 안전놀이터
