New York Leads Key Changes in North American Sports Betting

The North American sports betting industry saw a flurry of legislative and corporate moves this past week, with various states pushing forward bills aimed at reshaping the gambling landscape. From New York to Mississippi and Ontario to New Jersey, the focus is on regulating the industry, expanding access, and refining tax structures in an effort to stay ahead of the rapidly evolving market.

New York's Regulatory Overhaul

New York state senator Joe Addabbo made waves with two new pieces of legislation aimed at regulating and expanding the state's sports betting market. On March 4, Addabbo introduced S5935, a bill designed to clamp down on unregulated sweepstakes platforms that have become a growing concern. These platforms operate in a regulatory gray zone, offering casino-like games without paying taxes or adhering to the stringent rules applied to licensed operators. Addabbo’s bill seeks to ban operators from working with unregulated platforms and defines such sweepstakes as games that “simulate casino-style gaming.”

Additionally, Addabbo filed S6013, which proposes expanding New York’s digital sports betting market. The current cap on digital wagering licenses stands at nine, but Addabbo aims to raise that number to 14 by 2026 and 16 by 2027. Notably, this proposal would prioritize re-applications from operators like Bet365 and Fanatics Sportsbook, who were previously denied licenses. The bill also adjusts the tax rates based on the number of operators, with the percentage lowering as more companies enter the market. The current tax rate sits at 51%, but it could dip as low as 25% if the state has 15 or more operators by 2027.

The Battle for Downstate Casino Licenses Heats Up

In the high-stakes race for downstate casino licenses, bidders are pulling out all the stops, with a combined $6 million spent on lobbying last year. The New York City clerk’s office revealed that prominent figures like Steve Cohen, owner of the New York Mets, have contributed heavily to the lobbying efforts. Cohen, alongside Hard Rock, is pushing for a casino resort near Citi Field in Queens, while competitors like Resorts World and Bally’s also spent significant sums to influence the process. With bids for the three downstate licenses due by June 27, all eyes are on the New York State Gaming Commission, which is expected to issue licenses by the end of 2025.

Mississippi lawmakers took a major step forward in expanding sports betting options, with a proposal to legalize digital sports betting advancing to the state Senate. Despite significant resistance from Senate gaming chairman David Blount, the House managed to push language from the bill through to the upper chamber. Mississippi, known for its traditional casino scene, has long lagged behind other states in digital betting. Representative Casey Eure, who has been championing gambling expansion efforts for several years, emphasized that the bill’s passage through the House signals a serious push for mobile betting, even if the path ahead remains uncertain.

Ontario’s sports betting market, one of the most competitive in North America, witnessed a major shift this week. UK-based platform FitzDares announced its withdrawal from the province, citing fierce competition from over 50 other operators. The company will cease operations on March 24, with users having until March 31 to withdraw funds. Ontario's sports betting landscape continues to evolve, with companies like TheScoreBet, a subsidiary of Penn Entertainment, continuing to perform strongly. According to Penn’s CEO, TheScoreBet remains the top revenue generator for the company in North America, with optimistic projections for expansion into Alberta pending regulatory approval.

New Jersey and North Carolina Tackle Gambling Taxation

New Jersey and North Carolina also made significant strides in refining their gambling tax frameworks. A new bill in New Jersey, HB 4113, seeks to prevent public universities from entering into partnerships with sports betting operators while allowing higher education foundations to engage with these companies under specific conditions. This bill, which is still under review by the Senate, could impact how betting companies approach sponsorship and marketing at New Jersey’s state institutions.

Meanwhile, North Carolina lawmakers approved a bill allowing taxpayers to write off gambling losses on their taxes, a move that could make the state more appealing to bettors and enhance consumer protection. The bill, HB 14, is now in the finance committee and would allow both itemized and standard deductions for gambling losses, with a retroactive provision dating back to January 2024.

Corporate reshuffles were also a major theme this week. BetMGM, the third-largest digital sports betting operator in the U.S., announced layoffs of 83 employees at its Jersey City headquarters. The company attributed the cuts to slower-than-expected growth, exacerbated by a nationwide decline in sports betting revenue. This follows a broader trend of industry slowdown, as the rapid growth seen in the first few years of legalization appears to be plateauing.

 

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Conclusion & The Future

Meanwhile, YouTube made a bold move by cracking down on unregulated gambling content. As of March 4, the platform will no longer allow videos that link to or promote illegal betting websites. The new policy includes a ban on content that attempts to drive users to unapproved platforms, alongside the introduction of age restrictions for content related to online casinos. This is seen as part of YouTube’s broader effort to comply with global gambling regulations and curb the promotion of black-market betting sites.

The North American sports betting industry continues to evolve rapidly, with states and operators adjusting to new opportunities and challenges. From regulatory overhauls in New York to shifting corporate strategies and the tightening of online content rules, the landscape is in flux. As legislative battles continue across states, it’s clear that the sports betting world will be a critical battleground in the coming months, shaping not just the industry’s future but also its impact on local economies, players, and communities.