On Friday, October 22nd the New York State Gaming Commission announced what the tax rates will be for anyone unfortunate to win the right to operate online sports betting. Most of the bids were probably already in, but the Gaming Commission graciously gave the companies involved til Monday to amend their complex, multi-million-dollar proposals.
There are so many things wrong with this attempt by New York to catch up with New Jersey and the rest of the country that it is hard to know where to begin.
The minor question is how an administrative agency like the Gaming Commission has the right to set the tax rate. Everywhere else, only legislatures can pass tax laws. But maybe New York is different.
Of greater concern is the tax rates the Gaming Commission chose. News reports headlined that the highest tax rate was set at 65%. I think it would be more accurate to say New York decided sports books could keep 35%.