The launch of mobile sports betting in New York State promised tons of revenue to youth sports organizations, and the money has finally arrived. Most of these programs provide a safe environment for underserved kids to learn valuable skills. However, the process of getting the money to organizations turned out to be quite flawed and it took a while.
Currently, New York offers eight online sportsbooks with the nine being offline to undergo modernizations. Operators’ sports betting revenue is taxed at the hefty 51% and the tax money is distributed to several services and organizations. Initially, mobile sports betting included 1% of taxes going to youth sports groups, which was changed to US$5 million a year.
Unaware of the Funds’ Availability
Deon Rodgers, president of the volunteer-based nonprofit River Flow Soccer Club was not aware that the funds from mobile sports betting were available. He said that his organization will gladly apply as every year they operate in the red and have never turned a kid away. He also noted that its members put money out of their own pockets to pay for kids.
Tony Jordan, director of the county Youth Bureau also recognized that getting information out to programs that need funding must improve. He further noted that the organization will be re-issuing its request for proposals. And that they will put more effort into getting the word out about the available funds. He is optimistic that it will have a better response.
Last year, almost half of the money devoted to youth sports from mobile sports betting went to just three counties: New York City, Nassau County and Suffolk County. This happened even after 55 other counties had access to the same funds. But it should be explained that all counties are not the same in terms of population or needs, but the lack of awareness is the highlighted issue.
However, those numbers improved in 2023. The amount delivered nearly quadrupled from just over US$1 million to US$3.75 million and its distribution is more balanced. Last year, only three counties got at least US$50,000, meanwhile, this year, 11 counties received at least US$50,000. NYC clocked US$1.38 million, Suffolk US$260,616 and Nassau US$241,503.
Latest on Online Sports Wagers in NY
Recently, the New York State Gaming Commission issued its latest weekly report on the state’s mobile sports betting sector. For the week ending on August 27, 2023, the eight online operators generated a combined handle of US$212.2 million and gross gaming revenue of US$21.4 million. Hence, finally findings some consistency after a turbulent summer.
At the end of last month, New York Senator Joe Addabbo, D-Queens, who is one of the biggest mobile sports betting proponents, announced that he will be hosting an online seminar on problem gambling education. The event will take place on September 13, 2023, from 7 p.m. to 8 p.m. on Zoom. For those who want to join, the room’s ID is 840 5365 7492, while the passcode is 767130.
Source: McBride, T.J. “Distribution Of NY Sports Betting Taxes To Youth Programs Improving” NY Sports Day, September 5, 2023
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