Daily Wagering Cap Would Cut Revenue
The average sports bettor isn’t going to wager anywhere close to $5,000 per day, but New York is home to many wealthy gamblers. Those high rollers are helping fuel New York’s still-growing sports betting market, which remains the most profitable in the country. The market’s strength has made it the top destination for all sportsbooks, despite the 51% tax rate.
If New York lawmakers pass A7962, they will do so knowing it will lead to a drop in tax revenue from the industry. While that may be a deal they are willing to make, it is unlikely that the industry will.
Advertising Restrictions Would Bring Big Changes
The advertising restrictions included in A7962 would be the most severe in the country. The proposal consists of the following changes:
- No sportsbook advertising between 8 AM and 10 PM
- No advertising free bets, bonuses
- No in-game advertising for college or pro events
These changes are similar to those found in the SAFE Bet Act, which has been making its way around Capitol Hill. The belief is that some residents are being misled by sportsbook ads, leading them to begin betting without understanding what they are getting into.
These restrictions would also help avoid advertising to minors. The restricted hours would also cause ads to run after most professional and college games have already ended.
Will Other States Follow Advertising Rules?
New York has served as the market leader in the country’s sports betting industry. Its 51% tax rate is one that other states are pushing for, though few have been successful.
If A7962 becomes law, it could lead to other states proposing similar legislation. With the US Congress struggling to pass federal laws regulating sportsbook advertising, states have been left to navigate the issue on their own. With many lawmakers still looking for solutions to problem gambling, don’t be surprised if other states quickly follow New York’s lead with A7962.