New York Might Increase Sportsbook Licenses

By Ben Hamill - March 09 2022
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New York Might Increase Sportsbook Licenses

If New York Assemblyman J. Gary Pretlow has anything to say about it there could soon be significantly more mobile sportsbooks operating in the area. He has officially proposed that the number of active licenses be increased to 16, which he suggests will have a positive economic impact. This means that the number of active sports books could soon be significantly higher than the current 9.

Having only launched on January 8th, 2022, the online sports betting in the region is already generating an extraordinary amount of revenue. US$3 billion in handle was generated in the first and second months, making New York the official biggest market in all of the United States. The key is, however, that 9 operators were quickly given the nod by the New York State Gaming Commission, in accordance with the current model. But with the limit already reached there is now no room for new competition, and that is the issue that Assemblyman Pretlow aims to address.

Plenty Room To Grow

According to the Assemblyman, it is all a matter of the industry having plenty of room to grow. Though, he isn’t suggesting that the increase happen all at once. His plan is that licenses gradually be added over time, until reaching the total of 16 in 2024. He additionally suggests that tax be reduced in conjunction with each new position made available.

The new model, if adopted, would dramatically reduce the current tax rate from 51%, all the way down to 25%. It is no secret that discontent has already been heard about the enormous 51% tax rate, with many pointing out that it is the highest in the country. Hence, a reduction would undoubtedly be celebrated, even if it does mean an increase in competition.

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A Long Road Ahead

But Assemblyman Pretlow’s new legislation does have a long way to go in order to become official. It must first be greenlit by the New York State Gaming Commission, which could take months, or even more than a year.

However, the Assemblyman has more of a backing for his proposal than just a broader market. He has explained that more active licenses will not only create new jobs, but also ultimately result in more revenue for the state. The 16 operators combined will generate overall more income, even if the tax rate is slashed.

This is just the start of the story for this new Bill, with plenty more news likely coming in the near future.

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