New York Sports Betting Law: Everything You Need to Know
New York has become one of the most important states in the United States when it comes to sports betting. As of January 2022, mobile sports wagering has been fully legalized and regulated, making New York one of the largest sports betting markets in the country. This article provides an in-depth look at the legal landscape, licensing structure, tax regulations, and key aspects of the current New York sports betting law.
Legalization and Timeline
The path to legal sports betting in New York began after the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018. Although New York had previously passed a constitutional amendment in 2013 to allow in-person sports betting at commercial casinos, it wasn’t until 2019 that the state implemented this policy. In January 2022, New York launched legal online sports betting, following approval in the 2021 budget.
Regulatory Authority
The New York State Gaming Commission (NYSGC) is the primary regulatory body overseeing sports betting operations in the state. It sets the rules for licensing, compliance, integrity monitoring, responsible gambling programs, and enforcement. All operators must meet strict guidelines to maintain their licenses.
License Holders and Operators
New York’s sports betting market operates under a unique model. The law allows up to nine mobile sports betting operators to partner with platform providers licensed by the state. Each platform provider must pay a $25 million license fee and agree to a high tax rate.
Notable legal sportsbook operators in New York include:
- DraftKings
- FanDuel
- Caesars Sportsbook
- BetMGM
- PointsBet
- BetRivers
- WynnBET
- Bally Bet
- Resorts World Bet
These companies partner with either a tribal casino or a commercial gaming facility as required by law.
Taxation and Revenue
One of the defining features of New York’s sports betting law is its extremely high tax rate. Mobile sports betting operators are taxed at a 51% rate on gross gaming revenue (GGR), which is among the highest in the country. The state has justified this high rate by pointing to the massive volume of wagers placed and the resulting tax revenue generated for education and public services.
In the first year of mobile sports betting alone, New York generated over $700 million in tax revenue.
Betting Restrictions and Prohibited Wagers
While New York allows betting on most professional and collegiate sporting events, there are some key restrictions:
- No betting is allowed on college sports teams based in New York, regardless of where the event is held.
- No betting is allowed on high school sports or youth sporting events.
- Proposition bets on individual college athletes are prohibited.
Responsible Gambling Measures
The New York law includes strict responsible gambling provisions to protect consumers. Operators are required to:
- Offer self-exclusion programs.
- Provide tools for setting deposit, spending, and time limits.
- Promote responsible gambling messages and helplines.
The state also allocates a portion of sports betting revenue to fund problem gambling education and treatment programs.
Retail vs. Mobile Betting
Retail sports betting is available at licensed commercial and tribal casinos upstate. These include:
- Rivers Casino Schenectady
- Resorts World Catskills
- Del Lago Resort & Casino
- Tioga Downs Casino Resort
Mobile betting, however, is the primary driver of revenue and engagement in New York. Bettors can place wagers through apps and websites from anywhere within state borders.
Future Outlook
New York lawmakers continue to explore options for expanding sports betting, including:
- Legalizing fixed-odds horse racing betting via sportsbooks.
- Allowing betting kiosks in stadiums and arenas.
- Expanding partnerships with professional sports teams.
The success of mobile sports betting may also open the door for broader online casino gaming legislation in the future.
Conclusion
New York’s sports betting law has transformed the state into a powerhouse in the national gambling landscape. With a strict regulatory framework, high tax rates, and a competitive operator market, the Empire State has balanced consumer access with public benefit. As the industry evolves, New York is likely to remain a trendsetter in the realm of legal sports wagering.
