An additional 1% of New York’s sports betting tax revenues would have been earmarked for problem gambling services but that language was nixed, as was the elimination of futures betting on awards like MVP, Coach of the Year, and the Cy Young Award to name a few.
Better Luck Next Year
New York’s tax coffers have swelled by $1.55 billion over the last two years from levies on sports betting revenues and another $200 million in licensing fees. Much of that $1.75 billion is directed towards education, a priority of New York Governor, Kathy Hochul.
“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,” Hochul said in that statement. “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.”
The last line of the governor’s statement is paradoxical considering that 1% of the sports betting tax revenue (with a minimum of $6 million) on sports betting was proposed, yet, ultimately eliminated from the next fiscal budget.
Also removed from the budget was the addition of futures betting on sports awards given to athletes at the end of the year such as the annual MVP awards, among others, in all of the major sports.
Funding Needed
Last year, programs to treat and assist problem gamblers were granted $6 million while funding for sports programs focusing on underserved youth came to $5 million. An increase to the problem gambling services budget appeared to be an item that would not be opposed but the line was struck and there will be no additional funding for those services.
Based on the 2023 calendar year, mobile sports betting generated $862 million which means approved problem gambling programs in the state would have received $8.62 million, far surpassing the $6 million currently designated.
Much Needed Funding
Michelle Hadden, assistant executive director with the NY Council on Problem Gambling, has been vocal in supporting a budget increase for gambling addiction services and applauded State Senator Joe Addabbo and the bill he proposed to add the 1% to the budget.
After being made aware of Addabbo’s proposed legislation, Hadden said the following:
“We appreciate the Senator’s support and recognition that additional resources are needed to address the harms caused by gambling. We hear stories every day from individuals and families who are struggling to cope with the consequences of a gambling problem.”
“Additional resources means we can bring more awareness to the issue, work to prevention problems, and improve access to care. From NYCPG’s perspective, this is a positive step forward,” Hadden added.
Frustrating Outcome
Senator Addabbo was naturally perplexed upon learning that the additional funding was struck from the budget, stating, “To me, that was a no-brainer. Prop bets, we’re going to look at. I’m always more confident in my side (the Senate) than the Assembly side, but we’ll look to do prop bets post-budget as well.”
“This is their (NY Council on Problem Gambling) thing. It came from them,” Addabbo said. “And to shoot them down, I thought, ‘Fine. Ok. We’ll look to pass this in both houses and then let’s see what the Governor does.’ It’s frustrating. It’s not disappointing. It’s the right thing to do.”
