This week's gambling news focuses on the expected growth of betting online in the U.S., and, in particular, the expansion of regulated internet casino games.
Why are online betting and casinos about to explode now? And what lead us to this point?
Just two months after the record breaking launch of mobile sports betting, the expansion of New York betting online via casino games is being proposed in new legislation. Well, that didn’t take long, did it?
The political force behind the bill which regulated mobile sports bets, State Senator Joseph Addabbo, is now pushing a new bill seeking to do the same for betting online at casinos. However, unlike the somewhat absurd tax rate of 51% imposed on mobile sports books, web based casinos would only be taxed at 25%.
Addabbo’s Senate Bill 8412 specifically seeks to “authorize online interactive gaming” and collect a one time licensing fee of $150 million. Estimates are that the proposed tax rate for New York online gambling would generate and additional $475 million in revenue for the state each year.
Following the success of online sports betting in the state, many in the industry (including ourselves) suspected that a move like this would follow once states (not just New York) got a taste of gambling profits. Plus, New York has watched as states like Pennsylvania and their neighbors in New Jersey have added about $120 million a year in taxes from betting online at casinos.
If New York online gambling is authorized, they could easily become the most profitable state overnight… just as they did with mobile sports betting. Lawmakers are also eager to help economic recovery from the pandemic, and this could help speed that process along.