The New York Assembly Racing and Wagering Committee's new chair wants a sports betting taxation scale based on the number of online operators, that would lower individual payouts to the state. Assemblywomen Carrie Woerner, who took over as legislative gaming committee chair last month, recently introduced A6013 to the committee. The proposed amendment bolsters the Empire State’s number of mobile sportsbooks from the current nine to 14 by Jan. 2026 and to 16 by Jan. 2027.
At a time when New Jersey and other states are contemplating sports betting tax hikes, Woerner’s plan lowers New York's to 25%. That would make it more attractive and sensible to operators that currently can’t afford to launch in the U.S.' most lucrative market. New York’s current 51% tax rate on gross revenue online sports betting companies produce is the country's highest.
Woerner’s scale
| Number of online operators | Operator tax rate |
| 4-5 | 64% |
| 6 | 62% |
| 7 | 60% |
| 8 | 58% |
| 9 | 51% |
| 10-12 | 50% |
| 13-14 | 35% |
| 15 or more | 25% |
The Empire State’s mobile sportsbooks generated $2.05 billion in revenue from a $22.7 billion handle in 2024, the most of any U.S. state. Illinois finished second with $14 billion in wagers and nearly half of New York’s gross revenue.
FanDuel, DraftKings, Caesars, BetMGM, Fanatics Sportsbook, BetRivers, ESPN BET, Bally Bet, and Resorts World Bet currently operate in New York.
ESPN BET is the latest addition. The PENN Entertainment platform bought WynnBet’s Empire State operating license for $25 million a year ago and launched in late Sept. 2024. PointsBet was an original operator before Fanatics Sportsbook bought the Australian gaming company’s U.S. assets in 2023.
Some popular brands that could be interested in entering New York's market should this bill pass include bet365 and Hard Rock Bet as well as up-and-comers like Prime Sports, Betr, and Underdog Sports.
Going the other way
It’s unclear how Woerner’s bill will go over in New York's legislature, but it’s going against the grain. Nearby New Jersey Gov. Phil Murphy released a proposed budget that would increase the Garden State’s online operator tax from 13% to 25%.
Ohio wants to raise its rate from 20% to 40%. Illinois Gov. JB Pritzker instituted a progressive tax system in July 2024 with top tier operators, like FanDuel and DraftKings, paying out 40%.
“It’s all being done very wantedly without any real thought to sustainability to the industry,” former Prime Sports executive chair Joe Brennen Jr. told Covers Monday. “There has to be an effort to go back and make the case to legislators that this is really bad in the long term.”
