New York sports betting continues to reach new heights as the state, with the fourth highest population in the United States, has no competition. The sports betting capital is looking for ways to be more inclusive as New York Tribes could join the online sports wagering market.
Tribes Could Have a Seat At The Table
Sen. Joe Addabbo and Assemblyman J. Gary Pretlow are important figures when it revolves to sports betting and gaming in the Empire State since they are chairmen in their respective groups. Former Gov. Andrew Cuomo had a different approach because he wanted to give out fewer approved licenses.
Cuomo wanted the state to have four sportsbook operators conducting business in the state, but there are nine bookmakers that are live in the state at the moment. The one group that was left out of the conversation was the Tribes, but this group has been in conducting business in the gaming industry for over 25 years.
The Tribes’ gaming facilities are located in the upstate portion of the state and aren’t obligated to report their monthly handle and revenue to the state. Over the course of a year, the state has brought in over $700 million from the sports betting operation alone.
With iGaming becoming a major possibility in New York, this would put the gaming tribes in a difficult situation because of the potential threats. Many people that live near New York City will not take a trip upstate because mobile casinos would make it convenient for most consumers.
Would the Changes in the Bill Help the Tribes?
Currently, the tribes don’t receive revenue from the tax receipts that are generated from sports betting. According to Addabbo, SB 1962 would expand the number of sports betting operators from nine to 14 by 2024 and to 16 by 2025. In the subsequent year, the tax rate would decrease to 25 percent from 35 percent.
Assemblyman J. Gary Pretlow believes it’s unfair to not give the Tribes a seat at the table. Addabbo continued by stating, “When Gary and I did the first mobile sports betting bill, we had everybody in the tent: Native Americans, kiosks, racetracks, stadiums, under the belief that access would be one of the key aspects for success.
The federal government prohibits states from taxing gambling revenues that tribes generate from their Class III gambling licenses. However, the state could find ways to work around the system set in place.
This Potential Decision Could Change the Landscape of the Industry
Tribes could have the chance to run their own mobile platform if the cards are played right. This would make it into the history books as the state could gain more profit from platforms run by tribes.
Unlike California (Neither side won), mobile sportsbooks and Tribes will be able to compete and co-exist with each other. This decision could have an effect on the industry as a whole.
