New York State Eyes Up Potential Online Casino Launch
Lawmakers in New York are currently reviewing a bill which looks to establish an online casino market in the Empire State. If suitably approved, Senate Bill 8412 will legalize online gaming platforms across the province. This represents another a major opportunity for localoperators, who received a considerable shot in the arm at the turn of the year.
Since early January, the state has presided over an unprecedented commercial return from its fledgling online sports betting sector. In an incredible period of trading, New York punters have wagered an eye-watering $2bn through online sportsbooks, partially facilitated by bumper takings around Superbowl weekend. This has also generated colossal revenue for the state, as a heavy, 51% taxation rate on online sports wagering directs substantial funds back towards local authorities.
Senate Bill 8412 isn’t quite as generous, with tax set at a more reasonable 25% of gaming revenue. However, state coffers will be further boosted by the decision to harness a ‘one-off fee’ on approved operators and gaming platform sub-contractors. If the bill is successful, firms that initiate an online casino tool will be expected to pay $2m for the privilege. Furthermore, any company who provides platform software or technical support, and advertises its brand through its client’s application, will be slapped with a $10m charge. It’s reported that this will earn the state around $150m in ‘one-off fees’ This, coupled with a healthy gaming tax levy generating around $475m per annum, sees the state take a substantial cut of earnings.
Given performance of neighbouring states, analysts are optimistic about the potential market. New Jersey, which has been colloquially re-branded as ‘Vegas East’, and Pennsylvania, both surpassed $1bn in online gaming casino revenue last year.
If online gaming reaches anywhere close to the heady heights of New York’s sportsbook performance, then New Jersey’s newly adopted title may need to re-locate to a state slightly further north…….
