Assemblywoman Carrie Woerner has filed a proposal that could see New York grant extra sports betting licenses, reduce the tax rate, and pave the way for crypto.
A6013 seeks to amend the definition of sports wager to include other things of value and change the licensing requirement for mobile sports wagering operators. It also provides that the state shall have fourteen licensed operators by 31 January 2026 and sixteen operators by 31 January 2027. The tax rate would also reduce based on the number of operators.
For crypto sportsbook enthusiasts, an amendment to the definition of sports wager will be of significant interest. The proposed legislation reads: “Sports wager means cash [or], cash equivalent OR THING OF VALUE that is paid by an authorized sports bettor to a casino or a mobile sports wagering licensee to participate in sports wagering offered by such casino or mobile sports wagering licensee.”
Although further detail is not provided, and there is no specific mention of digital currencies, adding ‘thing of value’ to legislation would allow regulated operators to accept crypto and further mainstream it.
New York’s Plan to Expand Sports Betting: More Licenses, Lower Taxes
Woerner, who chairs the Assembly Racing and Wagering Committee, has also proposed allowing additional licensees in the Empire State. Currently, the following operators hold New York licenses:
- Bally Bet
- BetMGM
- BetRivers
- Caesars
- DraftKings
- ESPN Bet
- Fanatics
- FanDuel
- Resorts World Bet
Under the proposed legislation, a new license would cost an operator $50 million, and five new operators would be required by 31 January 2026, rising to a maximum of sixteen the next year.
It would also introduce a sliding tax rate connected to the number of licenses. Currently, New York has a tax rate on gaming revenue of 51 percent for mobile sports betting operators. Since the launch in January 2022, sports betting operators have taken over $5.4 billion in revenue, providing the state of New York with $2.8 billion in tax receipts.
Under Woerner’s proposals, tax would decrease as follows:
- 10-12 operators would reduce the tax rate to 50 percent.
- 13-14 operators would lower the tax rate to 35 percent.
- 15-16 operators would take the rate to 25 percent.
Sen. Joseph Addabbo introduced a similar bill two years ago. However, any bill seeking to reduce the tax rate is often met with a frosty reaction among lawmakers. Addabbo is also pushing to have online casinos legalized; however, there still remain significant obstacles to iGaming being signed into law.
Will New York Crypto Task Force Simplify the BitLicense Regime?
New York has been a hub for crypto activity and entrepreneurship. In 2015, it launched its ‘BitLicense’ program, which requires businesses to obtain licenses from the New York Department of Financial Services to operate in the state.
Pro-crypto New York Mayor Eric Adams and other industry analysts have claimed the BitLicense regime is too complex and has costly requirements such as high licensing fees, inhibitive anti-money laundering, and know-your-customer regulations.
However, change could be on the horizon as Senator James Sanders has filed S4728. Dubbed the New York State Cryptocurrency and Blockchain Study Act, the proposed legislation would establish a crypto task force to investigate the state of cryptocurrencies and other forms of digital currency.
Should the legislation be passed, the group will be tasked with reviewing the state of crypto in New York. It will investigate how many digital currencies are being traded, the number of exchanges in the Empire State, and how crypto impacts tax receipts.
The task force will also examine crypto’s environmental impact and compare the state’s regulatory approach to that of other states and jurisdictions.
Explore more articles like this
Subscribe to the Markets Outlook newsletter
Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday
