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With online sports betting projected to be taxed at 50% or higher in New York, gaming companies won’t be able to make money in the state, according to Penn National Gaming’s chief executive officer.
“I don’t think a single operator will make money in New York,” CEO Jay Snowden said Thursday during an earnings call.
Penn National, based in Wyomissing, Pennsylvania, bought Barstool Sports in 2020 and backs the Barstool sports-betting app. The app is operational in 10 states from Arizona to New Jersey.
New York Commission Meeting Monday
Nov. 5 update
The New York State Gaming Commission is set to meet Monday at 1:30 p.m. to consider granting mobile sports betting licenses to at least two platform operators with multiple sportsbooks..
State officials hope to have mobile sports betting up and running in time for the Super Bowl early next year.
One group in line to provide online sports betting includes Bally Bet, BetMGM, DraftKings and FanDuel. A second group includes Caesars, Wynn Interactive, Empire Resorts, PointsBet and Rush Street Interactive, the newspaper reported, citing an unnamed source.
A question remains whether a third group is in the running, according to the Post. This groups includes rapper Jay-Z, Fanatics and Barstool’s Penn Sports Interactive.
In the earnings call, Snowden noted that the only state with a tax rate as high as New York’s is New Hampshire, which taxes sports betting operators at 51%. The top rate in New York also is expected to be 51%.
New Jersey, which benefits from New Yorkers crossing over the state line to place mobile bets, takes 13% from sports betting operators. The rate in Connecticut, which also borders New York, is 13.75%.
‘Mixed Feelings’
Snowden said he has ‘mixed feelings’ about being involved in New York mobile sports betting because of the tax rate and licensing fee. But he added that ‘you’d probably rather be in than not.’
New York is expecting sport betting to generate $10 billion in 2022.
With a population of more than 19 million, New York is the fourth most populous state in the nation.
In Florida, the nation’s third most populous state with about 22 million residents, mobile sports betting began on the Seminole Hard Rock Sportsbook app this week.
Legal sports betting is not operational in the nation’s two most populous states, California and Texas.
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Source: https://www.gambling.com/us/news/penn-national-ceo-operators-won-t-make-money-in-new-york-2780200