Executives from the two biggest mobile sportsbook operators in New York contended Tuesday that the state's high tax rate could lead to dire consequences for the nation's No. 1 sports betting state if legislators don't lower it soon.
“We want New York to be the beacon of this industry and it can be, but the big early tax revenue numbers, not to mention the consumer safeguards expanded to New Yorkers, will prove to have been a fleeting achievement if we do not change the course for the long term,” said FanDuel President Christian Genetski.
DraftKings CEO Jason Robins went a step further, saying his sportsbook and others might soon offer New York bettors worse odds than neighboring states such as New Jersey if legislators don't act to lower the 51% tax rate on gross gaming revenue. That rate is tied with New Hampshire for highest in the nation.
Robins compared the New York tax structure to that in France, where a high effective tax rate has impacted sportsbooks' bottom lines and their ability to keep customers away from illegal offshore markets.