At the National Council of Legislators from Gaming States summer meeting, Troy Mackey from the New York Assembly’s Racing & Wagering Committee stated that the 51% tax rate on NY sports betting is unlikely to be reduced.
Initially, the tax rate was proposed to be around 37%, but former Governor Andrew Cuomo set it at 51% to mirror New Hampshire’s model. Despite attempts to introduce legislation to lower the rate by increasing the number of operators, the initiative faced resistance due to the strong performance of the current tax rate and its contributions to education funding.
What is the 51% NY Gambling Tax?
The 51% tax rate in New York is applied to the gross gaming revenue of online sports betting operators; casino apps are still illegal in NY state. It is one of the highest tax rates in the United States, designed to generate significant revenue for the state, primarily funding education programs. This high tax rate was initially not expected when the legislation was written but was later implemented to replicate the successful New Jersey or New Hampshire tax model.
