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NY Sports Gambling Tax Likely Staying Put At 51%

New York State Assemblyman Gary Pretlow, the chairman of the Racing and Wagering Committee, has indicated that the proposed 51% tax rate on sports betting revenues in the state is likely to remain unchanged. The high tax rate has drawn criticism from industry experts, who argue that it will deter potential operators from entering the market and may ultimately limit the success of the industry in the state.

Why?

Pretlow, however, has defended the proposed tax rate, stating that it is necessary to generate sufficient revenue for the state. “We have to balance the needs of the industry with the needs of the state,” Pretlow said. “The state has a lot of expenses, and we have to fund them.” Despite the criticism, Pretlow remains confident that the sports betting industry will thrive in New York, even with the high tax rate. “I think we’ll have a lot of interest in sports betting, and I think it will be successful,” he said.

Causes For Concern

Opponents of the high tax rate argue that it will make it difficult for operators to turn a profit, which could ultimately lead to a less competitive market. In states with lower tax rates, such as New Jersey and Pennsylvania, the sports betting industry has flourished, with multiple operators entering the market and offering a variety of options for consumers. There are also concerns that the high tax rate will drive consumers to illegal, offshore sports betting sites, which do not require players to pay any taxes on their winnings. This could result in a significant loss of revenue for the state, as well as potentially exposing consumers to risks such as fraud and financial crimes.

Wrap Up

Despite these concerns, it appears that the 51% tax rate is here to stay, at least for the foreseeable future. While it remains to be seen how the sports betting industry will fare under these conditions, it is clear that the high tax rate will present challenges for operators looking to enter the market in New York.

 
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