New York Assemblyman Gary Pretlow has confirmed that the state’s permanent sports betting tax rate will remain at 10% for the foreseeable future. This announcement comes as a relief to many in the industry who were concerned that the tax rate would increase, making it more difficult for sportsbooks to operate profitably in the state.

The 10% tax rate was initially set as part of the state’s 2019 budget, which legalized sports betting in New York. At the time, lawmakers were optimistic about the potential revenue that could be generated from the industry, and the tax rate was seen as a way to help fund education and other public services.

Since then, however, there has been some debate over whether the tax rate should be increased. Some lawmakers have argued that a higher tax rate would generate more revenue for the state, while others have expressed concern that it would make it harder for sportsbooks to compete with illegal operators and offshore sites.

Assemblyman Pretlow, who chairs the Assembly’s Racing and Wagering Committee, has been a vocal advocate for keeping the tax rate at 10%. In a recent interview with Legal Sports Report, he explained that he believes the current rate strikes a good balance between generating revenue for the state and allowing sportsbooks to operate profitably.

“I think we got it right the first time,” Pretlow said. “We don’t want to overtax it and drive people back to illegal bookmakers.”

Pretlow’s comments were welcomed by industry stakeholders, who have been closely monitoring the situation in New York. Many believe that a higher tax rate would make it more difficult for sportsbooks to attract customers, particularly in a state like New York where there are already many options for gambling.

“Keeping the tax rate at 10% is great news for the industry,” said Chris Grove, managing director of sports and emerging verticals at Eilers & Krejcik Gaming. “It means that operators will be able to continue investing in their products and marketing efforts without having to worry about being squeezed by high taxes.”

Of course, there are still some challenges facing sports betting in New York. The state has yet to launch online sports betting, which is seen as a key driver of revenue growth in other states. There is also ongoing debate over whether to allow mobile sports betting, which would allow customers to place bets from their phones or other devices.

Despite these challenges, however, many in the industry remain optimistic about the future of sports betting in New York. With a permanent tax rate now in place, sportsbooks can continue to operate with confidence and invest in their businesses, helping to drive growth and generate revenue for the state.