Gambling is in the news all across the globe. Much of the new, and continuing influence of gambling, is due to the new legal frameworks in the United States. After a long wait, New Yorkers can legally place online sports bets in their state. Most of their neighboring states like Connecticut, Pennsylvania, and New Jersey legalized online sports betting a few years back, and the outcomes have been positive.
New York officials had been stagnant for a while, but in April of 2021, they announced that the budget is going to have a new source of income coming from online sports betting.
The state representatives gave the green light on the 8th of January, and since then, New York residents can place bets on any sports event.
Meaning of the NY Online Sports Betting Legislation
New York has officially joined 18 other US states which have legalized online sports betting. Since January 8th, 2022, anyone over the age of 21 can place bets on any of the authorized and licensed sports betting sites.
This is only an upgrade because sports betting has been legal in New York since 2013. Back then, officials passed the upstate New York Gaming Economic Development Act, which meant that a few land-based casinos could implement sports betting.
Now, with the passing of this legislation, numerous online betting sites can be created or become available in the state of New York. This means residents can enter, register, and place bets on the platform’s sports.
The Timeline of the NY Sports Betting Legislation
There were setbacks for many years, including the existing federal ban. However, New York state lawmakers and the previous governor Andrew Cuomo started taking steps toward changing the legislation in 2019.
In 2021, they announced that the state’s budget would include online sports betting funds.
The representatives hammered the final nail on the 8th of January 2022, when the state’s Gaming Commission announced that, at first, 4 predetermined online betting sites had met all the necessary regulatory requirements, and more are to follow in the future.
What Was the Purpose of This Legislation?
The main reason New York policymakers finally legalized online sports betting is money. New York will have the highest tax on online sports betting compared to the other US states that allow online sports betting.
The NY officials implemented a 51% tax on gross revenues by online betting sites. This isn’t by coincidence, as state lawmakers and previous Gov. Andrew Cuomo knew this would be a big money-maker for the state.
The state Division of Budget has done some estimates, and it has been said that yearly, online sports betting will bring somewhere around $480 million to the state of New York.
What Will the Money Be Used For?
About 80% of state tax on any form of gambling has been divided into two purposes under state law: elementary and secondary education and property tax relief.
The same applies to the state tax on online sports betting. However, this time there are two additional purposes, treating problem gambling and educating people about gambling addiction, including grants for sports programs for underprivileged youth.
Both objectives will receive 1% of the state tax on online sports betting. In subsequent years, about $6 million will go to the former, and roughly $5 million will go to the latter.
California Taking Steps to Legalize Sports Betting in the Future
Californians have patiently waited for their state to join others by making online sports betting legal. Some steps have been made, but nothing is official just yet. One thing that residents of the state have to look forward to is a bill to legalize sports betting, which will be voted on in November of this year.
Currently, Californians can only place bets at racing tracks and in certain land-based casinos. There are many land-based sportsbooks and online betting sites that are waiting for a decision because the California market is versatile, and the potential is not to be disregarded.
If the bill passes in November, California residents can enter, register and place bets on California-based or countrywide sportsbooks and betting sites.
Currently, there are only 9 authorized and legalized New York online sports betting operators. The number could extend to 16 in the near future, but legislators haven’t yet approved the proposal for this increase.
Nevertheless, New Yorkers have waited a long time and now can legally place wagers online.