Cuomo Introduces Tax Credits For Arts & Entertainment Affected by Covid-19 Pandemic

Yolanda Curtis
January 21, 2021

This was the most the governor spoke about mobile sports betting in the Empire State, a debate that has been ongoing since at least 2009.

Robert Mujica, Mr. Cuomo's budget director, said the state has saved $6 billion in the current fiscal year by holding back part of its planned payments to schools, local governments and social-services providers. And this is very lucrative. One proposal is we allow casinos to run mobile sports betting. "That's very good for casinos and the people who support casinos", New York Gov. Andrew Cuomo said Tuesday in his budget address. He prefers a lottery model with few sportsbook options.

Cuomo also threatened legal action against the federal government if it doesn't provide NY $15 billion in COVID relief.

Cuomo estimates his proposal to allow mobile sports betting could bring in $500 million a year, while legalized adult-use marijuana sales could eventually bring in roughly $300 million. "That is, the state runs it and the state gets all the revenue".

Cuomo is facing massive problems as his actions has curtailed revenue in not allowing businesses to operate as well as a massive number of for tax payers moving from the State to other places. "This is not a money-maker for private interests, it's just the means so that we [the state] can collect more tax revenue". "We want the actual revenue from the sports betting".

Cuomo presented the Fiscal Year 2022 budget for NY and began talking about the potential of sports betting in NY at the 22-minute mark in his address. This format is used throughout the country and is used in New Jersey.

With two vastly different views of how sports betting should be run, the legislature and Cuomo could be in for a battle this session.

Cuomo wants NY to get most, if not all of the revenue generated from legalizing mobile sports betting and stated he prefers the market be run similar to the lottery system.

This bill will now go to the desk of New York's Senate finance committee headed by (D) Sen. Joseph Addabbo introduced identical multi-operator wagering bills in their respective chambers shortly after Cuomo's initial announcement supporting online wagering earlier this month. Those bills also included expanded retail operations, including sports betting kiosks at stadiums, arenas, and off-track betting facilities.

The new surcharge would apply to all New Yorkers whose returns report more than $5 million in income, and the top rate would apply to income over $100 million.

Whether the governor is right remains to be seen. Cuomo said that if the state legislature does not adopt a budget by April 1, there will be no pay raises for either the executive or legislative branches of government.

Nonetheless, with one of the largest populations in the US, New York could be a behemoth in the burgeoning US sports betting market, and lawmakers in the state know this.

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