If passed, the bill would come into effect 90 days after being signed into law, but agreements between operators and racetracks would not be approved until 12 months later. Deals between operators and stadiums or arenas could take up to 20 months to approve.
The bill is currently with the New York Senate Rules Committee, after being formally introduced on 19 November.It follows on from the announcement earlier this month of the 10 approved operators who will receive licences to offer mobile sports betting in the state.
A tax rate of 51% of gross online sports betting revenue was also introduced, with operators paying a $25m for the ten-year licences.
Last week, in conversation with Pierre Lindh, managing director and co-founder of iGaming NEXT, Chris Grove of Eilers & Krejcik Gaming said the high tax rate is not likely to have a significant impact on operator behaviour immediately following the market’s launch – but that questions around the definition of taxable revenue will become prevalent within 2 or 3 years.
While the focus for the first year or two after launch is likely to be on customer acquisition and the securing of market share, operator approaches are likely to begin to diverge once the state’s ‘winners and losers’ have been more clearly established, Grove said.