Sports betting is the hot topic across New York state at the moment as time passes and the region approaches its potential legalization at the beginning of 2019. This Tuesday brought the 18th Annual Saratoga Institute on Equine, Racing & Gaming Law Conference which dedicated its attention to sports betting and the potential introduction of integrity fees to the future framework regulating the sector, which could boost all parties’ operation.
During the specifically dedicated panel Sports Gambling in New York and the Nation which took place this Tuesday, experts gave their insights regarding the future sports betting field and how it could take a different direction than the states which have already passed sports betting frameworks. Over the span of the entire day, important topics to the liking of Animal Welfare Issues in Horse Racing and Indian Gaming under the Trump Administration were talked through in an attempt to bring updates to the field, but sports wagering was a recurring topic of discussion through them.
According to experts’ and commissioners’ position stated during the public panel, professional sports leagues would benefit from the introduction of such integrity fees to the regulation, as the popular gambling activity is expected to rake in a considerable amount of revenue, projected to reach some $500 million and surpassing the current performance of Nevada. This, in turn, would result in larger fees paid to the professional sports leagues to the liking of the National Football League, the National Basketball Association, the Major League Baseball, and the National Hockey League.
The state is also going to benefit from some $41 million allocated to it. Sports betting would initially be allowed only at New York’s four privately run full-scale casinos. Peter Moschetti who is one of the gaming commissioners, stated that the Senate bill which was devised earlier this spring is still on the table in its entirety, including the proposed integrity fee feature. Following the US Supreme Court’s decision to overturn the Professional and Amateur Sports Protection Act of 1992 the state came up with an appropriate set of rules which could manage the potential sports wagering field.
Millions Expected to Be Poured Into Pro Sports Leagues
The so-called integrity fees have been debated across the states, weighing their pros and cons in the long run. They have been considered a fair way of management which would leave all participants satisfied and all parties involved would benefit at the end of the day. However, what should also be taken into account is that the state is not obliged to provide them with a fair piece of the pie, but regardless goes for it with the help of the proposed sports wagering regulation.
In the meantime, the major leagues are willing to take advantage of the situation, as this could be one of the few states supporting the idea of such fee structure. Many of the states which have already greenlighted sports wagering regulations or are still considering them have decided to stay away from integrity fees and refuse to implement them. John Bonacic, Chairman of the gaming committee, stated during one of the panels that the set of rules introduced in March should be taken into account and provide a reliable foundation for the future regulation.
It features the mandatory and widely implemented tax on revenue, which would amount to 8.5 percent here, as well as the fee amounting to 0.20 percent. The integrity fee is set to paid by the casino developers providing sports wagering directly to the professional sports leagues. As a result of this, the NBA is going to witness about $7 million in additional support which could then be utilized for the improvement of wages and the overall operation of the association.
In the meantime, racing is also making an attempt at entering the overall sports wagering field. Capitalizing on the rising popularity of sports betting across the states could be the golden ticket for the racing industry, as it could be presented as one of the options out there.
A wide variety of companies in the sector are preparing to make a move and participate by providing bets in the sports books across the state. New York Racing Association is willing to explore the future field and get a foothold which could diversify the field and be a breath of fresh air to it. Next year is set to witness more development as the General Assembly is set to renew its work on the regulation.