What’s next in the New York mobile sports betting negotiations between Cuomo and lawmakers?
Two of the biggest advocates of mobile sports betting in New York will officially be at the negotiating table with the governor.
Rep. Gary Pretlow and Sen. Joe Addabbo Jr. were both placed on the Economic Development Committee this week. This committee will, among other things, handle the negotiations on the Assembly and Senate proposal for mobile sports betting in New York in their one-house budgets.
Addabbo informed LSR on Tuesday that there are similarities with Governor Andrew Cuomo, which also supports mobile sports betting this year, is a good place to start. Now Pretlow is ready for the two of them to fight for their model’s approval.
“We will both try together to pressure the governor’s office to accept our proposal,” said Pretlow.
New York needs a budget to approve April 1st. How focused Cuomo can be and what influence he has on budget negotiations remains an important question as the embattled governor faces multiple scandals.
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As in most years, Addabbo and Pretlow have no easy task ahead of them. Cuomo’s proposal for sports betting is very different and calls for a much tighter market than the legislative proposal.
This has resulted in significant support for the Addabbo and Pretlow proposal. These include tribal casino operators, sports betting operators, sporting leagues and their player associations, potential partner operators, and more, Pretlow said:
“I’ve spoken to numerous players in the sports betting space and every one of them doesn’t like the governor’s plan and love our plan,” said Pretlow. “An expert in the field said that the plan that the Senator and I came up with is the best sports betting bill in the nation because everyone agrees.”
To be fair, it probably wasn’t difficult to get the leagues on their side. The proposal contains both official league dates for in-play betting and one Integrity fee from 0.2% of the handle.
The two legislators have drafted bills – S 1138 and A 1257 – propose the two skins per casino operator for 14th total a $ 12 million Upfront fee and a 12% Mobile sports betting tax rate.
The tax rate could be a point of negotiation
Both Addabbo and Pretlow know they have to give up something to make this happen. Given that Cuomo wants the state to generate more revenue through its model, these taxes and upfront fees may need to change.
Pretlow said both were bargaining options, although he really would rather not.
“I would rather not do it [change] one of them, ”said Pretlow. “If I had to do one, I would choose to increase the tax rate.”