New York is the nation’s largest sports betting market and scores of its advertisements assail consumers daily. But lawmakers want to legislate warnings on all sports betting advertisements, making consumers aware of the addictive nature of gambling and where to seek help.
Be Warned
Democratic Senator Leroy Comrie has scratched the itch that has been bothering many state senators since mobile sports betting went live in the Empire State back in January 2022. Comrie’s Senate Bill 1550 would mandate that all sports betting advertising would include verbiage warning consumers of the “potential harmful and addictive effects” of gambling.
The bill would also require that the New York State Gaming Commission (NYGC) and the Office of Addiction Services and Supports work together to make certain gambling advertisements “clearly and conspicuously state a problem gambling hotline number.”
The bill was overwhelmingly approved, 57-0, in the Senate and a similar bill had already passed in the Assembly which means this bill will likely reach the governor’s desk much sooner than later. This comes at a time when sports betting operators have become more cognizant of how they communicate their message. Messages like “no sweat bets” or free bonus bets have become verboten, as those words can mislead the public into believing no upfront cost is necessary to attain these incentives.
“In New York State, gambling can be found everywhere from physical casinos to a multitude of online websites and apps,” Comrie’s sponsor note on the bill says. “The advent of the internet has made gambling more accessible through online betting platforms. As gambling becomes more easily accessed by more people, the number of lives negatively affected by gambling has also increased. This can lead to serious consequences for both the gambler and their family.”
New York Tax Coffers Bursting
Mobile sports betting has been a bonanza for the platform providers and even more so for the state government, taxing adjusted gross revenues at 51%, the highest rate in the nation. Last January marked two full years of mobile sports betting in the Empire State and with that came staggering numbers.
At the end of 2022, after one full year of mobile sports betting, the state collected $693 million in addition to $200 million in licensing fees. After last year’s haul in 2023, another $862 million was collected for a total of $1.75 billion over the first two years in operation. This makes New York the nation’s undisputed leader in handles and revenues generated in the mobile sports betting market.
“Over the last two years, New York is the clear leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports, and problem gambling prevention,” Governor Hochul said at the beginning of this year. “I look forward to this third year of our successful gaming policies that deliver top-tier mobile sports wagering experiences. We will continue to generate revenue that will enrich the lives of New Yorkers, all with important safeguards in place to help those who need it.”
As for where the money is distributed, $6 million has gone to fund problem gambling education and treatment programs while $5 million has been earmarked to fund sports programs for underserved youths. The overwhelming majority of the revenue is put towards public education in the state.
