Mobile sports betting fails to make New York budget Media Man Int

Mobile sports betting fails to make New York budget - 2nd April 2019

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New York lawmakers have opted to omit mobile sports betting from the state’s FY 2020 budget, but have included a number of reforms and initiatives for other forms of gambling.

Agreed upon by Governor Andrew Cuomo and legislative leaders in the state, the budget sets out spending plans for $175.5bn (£134.6bn/€156.7bn) for the next 12 months.

However, the approved budget does not include any language related to mobile sports betting, despite Senator Joseph Addabbo's efforts to have it included in the final document.

The state will still move ahead with plans to regulate in-person wagering, with preliminary talks on sports betting regulations held in January and an initial list of regulations for the market published later that month.

Cuomo has consistently spoken out against mobile wagering. He has long argued that an amendment to the 2013 law permitting the establishment of four additional casinos in the state - that paved the way for the land-based wagering launch - does not allow online betting. He has argued that a consitutional amendment, which would have to be put to voters for ratification, is necessary for the launch.

Lawmakers in the state now have until the end of the legislative session in June to push through online and mobile wagering legislation. Addabbo has already filed S00017, which sets out an 8.5% gross revenue tax rate, with the bill currently being scrutinised by the Senate Racing, Gaming and Wagering Committee.

“From the beginning, I said we will not do a budget that fails to address three major issues that have evaded this state for decades - the permanent property tax cap, criminal justice reform and a Metropolitan Transportation Authority overhaul, including Central Business District Tolling,” Governor Cuomo said of the budget.

“I also said this budget must be done right - meaning it must be fiscally responsible and protect New York from the federal government’s ongoing economic assault on our state. I am proud to announce that together, we got it done.”

The budget does set out plans to enhance other areas of the state’s legal gambling market, which is at present limited to land-based casino betting and betting on horse racing. It fixes the pari-mutuel tax rate for five years and simplifies the commission structure for video lottery gaming in the state, as well as setting a cap on casinos offering free-play games to customers at 19% of the venue's revenue. This, however, will fall to 15% from 2024.

Gaming Commission hiring has also been simplified, with a restriction on hiring an individual who has held an occupational license from the Commission in the three years prior to appointment having been removed. In relation to this, the budget has streamlined occupational licencing for casino employees by reducing licence background investigations for non-key casino staff and vendors, unless a more in-depth investigation is warranted. In addition, an automatic bar on felony convictions has been removed.