Sports betting in New York State has been one of the hot topics for years now. First, it was its legalization, now it is its expansion, in order to match neighboring states and keep the region as competitive as possible. Governor Andrew Cuomo has until April 1 to come up with a deal regarding this gambling offering for all New Yorkers.
Upstate casino hotspots could end up paying lower taxes, whereas the New York City area might witness a long-anticipated casino expansion. These are all ideas that have received support over the past few months, leading up to the deadline for a deal, coming this Thursday when it comes to the 2021-2022 state budget. Quick action is the thing many locals are looking forward to.
Casino Tax Breaks
The New York State budget would aim to allocate a portion of the money to a casino and sports betting expansion over the upcoming months. Several aspects have triggered a conversation in relation to in-person and mobile gambling within the borders of the state. Tax breaks is one of those, eyeing preferential operational conditions for the four casino locations in Upstate New York.
Over the past more than a year, the aforementioned casino resorts have had to remain closed, in order to protect both staff members and their patrons. Not working at full capacity and limited working hours have also taken a toll on their gambling revenue once in-person gambling was once again allowed. The budget proposal came with a provision that could result in tax reduction, in case there is a provable financial struggle.
The New York State Gaming Commission will also receive the right to make decisions on the subject. Right now, del Lago Resort & Casino and Tioga Downs pay some 37-percent tax on the revenue generated by slot machines and electronic table games, while table games and sports betting come with a 10-percent tax. In the meantime, Resorts World Catskills is obliged to pay 39 percent and 10 percent on the same gaming revenue divisions.
Fully-Licensed Casinos
The brick-and-mortar casino with a hotel venue that pays the largest tax at the moment is Rivers Casino & Resort Schenectady. It allocates 45 percent of its slots revenue and 10 percent of its table games and sports wagering revenue. The low gambling revenue generated during these trying times makes their continuous operation unsustainable in the long run.
Casino expansion in Downstate New York could also be included in the upcoming budget. Support is growing and Thomas Carey, President of the Westchester-Putnam Central Labor Body, stated that a full-licensing of Empire City Casino will see an almost immediate effect on the local economy. Clergy and civil rights groups from the Queens communities have also expressed support for the Resorts World New York City in its efforts to become a fully-licensed casino.
Mobile sports betting could also see a green light once the state budget is finished. Assemblywoman Monica Wallace has proposed a percentage of the newly-generated revenue to be used as a boost for youth sports programs and her proposal could tilt the scales in the right direction for many sports betting fans.
Source: Cazentre, Don. “Mobile sports bets, more casinos and lower taxes: Hot gaming topics in NY budget debate”, NewYorkUpstate.com, March 30, 2021
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