BILL NUMBER: S5640C
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to authorizing up to two percent of mobile sports tax revenue
be used for youth team sports funding
 
PURPOSE:
This bill authorizes the usage of the tax revenue collected by online
mobile sports betting for programs in education, gambling addiction, and
youth sports statewide.
 
SUMMARY OF PROVISIONS:
Section 1: Subdivision 8 of section 1367 of the racing, pari-mutuel
wagering and breeding law, as added by section 3 of part Y of chapter 59
of the laws of 2021 is amended:
(a) Authorizes mobile sports wagering tax revenue collection and sepa-
rately maintains it for education aid through the state lottery fund for
education.
(b) Allocates 1 percent of the mobile sports tax revenue collected and
maintained by the commercial gaming fund in the first year to go toward
problem gambling education and treatment. Mandates the allocation of $6
million each fiscal year after.
(c) Allocates 1 percent of the mobile sports tax revenue collected and
maintained by the general fund for a program administered by OCFS for
statewide youth sports activities and education grant programs for the
first year. Mandates the allocation of $5 million each fiscal year
after. Provides criteria for which entities are eligible to receive
funding and what the funds can be used for.
(d) Requires the gaming commission to make monthly deposits using a
platform provider of payments. The comptroller has the authority to
determine the timing and conditions regarding the deposits, and which
depositories will be used. The money deposited will be credited to the
state commercial gaming revenue fund. The commission will require the
receipt of a monthly report and reconciliation statement.
 
JUSTIFICATION:
When New York State legalized mobile sports wagering in 2022, it imme-
diately saw success in raising tax revenue. New York collected a
combined $909 million in taxes and licensing fees from mobile sports
betting during the first year of operation, making it a national leader
in this form of revenue. This bill adds language expanding the criteria
of entities that are eligible to receive funding to include programming
improvements and capital equipment for sports teams and programs for
underserved youth under the age of 18.
 
LEGISLATIVE HISTORY:
2023-24: S9236 - Reported and Committed to Finance
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
The first of April next succeeding that date on which it shall have
become a law.