While it appears that the New York State Legislature will succeed in one dramatic change to the state’s gaming landscape – a sweepstakes casino ban – it did not succeed in an effort to further regulate sports betting.
Assembly Bill A7962, filed by Assemblyman Robert C. Carroll in April, was taken up by the Racing and Wagering Committee but didn’t advance past that committee.
If the bill had become law, it would have:
- Limited bettors to five deposits with each licensee in a 24-hour period
- Prohibited a bettor from wagering more than $5,000 on any single sporting event or within a 24-hour period on any number of events with a single licensee
- Prohibited bettors from being able to make deposits using credit cards
Bill included significant advertising limits
AB A7962 would have also curtailed advertising on New York sports betting significantly.
The measure sought to ban advertisements that “target sports bettors,” as well as any marketing materials “includ[ing] information about odds boosts or similar offers, including advertising that contains the phrase ‘bonus,’ ‘no sweat,’ ‘bonus bet,’ or any other similar term.”
Sports betting operators would have also been prohibited from running ads between the hours of 8 a.m. and 10 p.m., as well as during any live sporting events no matter when they occur.
In a post on X defending the bill after introducing it, Carroll said more protections were needed.
“My bill A7962 creates guardrails to protect NYers who participate in sports gambling. This nascent industry is lightly regulated and has harmed thousands of NYers. The least we could do is put specific monetary caps and advertising restrictions.“
He also revealed that he has an account at Caesars Sportsbook.
Bill would have aided off-shore sportsbooks
A7962 would have added to the existing law governing New York-licensed sportsbooks, passed in 2023, which requires that all advertisements for gambling and sports betting (per language in the bill summary),
“include warnings about potential harmful and addictive effects of gambling; requires the state gaming commission to cooperate with the commissioner of addiction services and supports to ensure that all advertisements for gaming activity state a problem gambling hotline number.”
The law could have had a chilling effect on legal sportsbook advertising, while allowing offshore online websites and other less-regulated entities relatively free rein.
New York’s current gaming landscape
While the Empire State has nine online sports betting operators, including popular options like FanDuel NY, DraftKings NY, Caesars, BetMGM NY, and Fanatics, it also has a 51% tax on sports wagering. That places it even with New Hampshire and Rhode Island for the highest tax rates on sports betting in the US.
It’s also created a tax revenue windfall for the state, according to a 2024 Washington Post article.
“New York’s sky-high 51% tax has allowed the state to collect a staggering $1.9 billion over just three years.”
Per Legal Sports Report’s continuing count, New York has the largest overall sports betting handle of any state, approaching $70 billion, and the highest amount of tax revenue generated, more than $3.15 billion and counting.
The bill to ban sweepstakes casinos in New York awaits Gov. Kathy Hochul‘s signature, who is expected to sign it into law.
