New York Bill A6013 Aims to Expand Online Sports Betting and Lower Taxes
New York lawmakers have introduced Bill A6013, a proposal to increase the number of online sports betting licenses and reduce the state’s high tax rate on operators. If approved, this bill could reshape the industry, making it more competitive and financially viable.
More Operators, Lower Taxes
Right now, only nine sportsbooks operate in New York. Bill A6013 would expand this number to 16 by 2027. By January 31, 2026, the state must license at least 14 operators, increasing to 16 by the following year.
New York’s 51% tax rate on operator revenue is the highest in the nation. The bill proposes a tiered system that lowers taxes as more sportsbooks enter the market:
- 50% if 10-12 sportsbooks operate
- 35% if 13-14 sportsbooks operate
- 25% if 15 or more sportsbooks operate
This change aims to attract more operators and make the market more sustainable. Some sportsbooks have avoided or exited New York due to the high tax burden.
High Licensing Fees and Competitive Selection
The cost to enter New York’s market remains high. Operators must pay $50 million for a license, while platform providers pay $25 million.
The New York State Gaming Commission (NYSGC) will oversee licensing and accept applications on a rolling basis to speed up expansion. The selection process will consider:
- Revenue potential for the state
- Market share and financial stability
- Advertising strategies and responsible gaming policies
- Diversity in hiring and business operations
- Revenue-sharing agreements with Native American tribes, which provide extra selection points
A portion of sports betting tax revenue will continue to fund education and youth sports programs. The bill seeks to boost state revenue while maintaining this financial support.
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