New York senators asking for sportsbetting promo limitations

NY Senator Wants to Limit Sportsbook Bonuses

By Lisa Spencer Senior Editor Updated: 26 December 2022

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

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There has been stiff competition among sports betting operators in New York since online sports betting launched at the start of this year.

This has led to a variety of promotions, advertising, and offers from operators looking to try and get bettors on board and stay a step ahead of the competition. However, it has been reported that one New York legislator is keen to take action and limit sportsbook advertising.

Senator Pete Harckham has introduced a bill that could impact what was described as ‘predatory sportsbook bonuses’ in relation to sports betting in New York.

The bill was filed just a matter of weeks after a report in the New York Times highlighted the amount of advertising that was being used by sportsbooks in the state. The report received criticism from a number of sports betting trade bodies such as IDEA Growth and the American Gaming Association.

Bill Designed to Limit Promos

The bill that has been filed by the Senator, Bill 9605, aims to limit sports betting promotional credits in New York.

A report in PlayUSA states:

That bill would give the New York Gaming Commission (NYGC) the power to ‘promulgate rules and regulations regarding predatory sportsbook bonuses in mobile sports betting.’

There are various promotions that the bill seeks to limit. These include deposit matching, free money, risk-free bets, site credits, free bets, and profit boosts, among other things. The Senator cited a range of articles that had been published in the New York Times when explaining his reasoning behind filing the bill.

He described the advertising market among sportsbooks in New York as being designed to lure people in from their own homes. He said that it was targeted advertising and described the strategies as predatory practices and would encourage gambling problems and addiction.

No information has been provided in the bill with regard to the types of restrictions and rules regulators might be able to put into place. Neither does it clarify whether these so-called predatory practices should be banned or more heavily restricted.

The bill does state that regulators need to take action to deal with the issue of promotional advertising because of the impact it can have. The next step is for the bill to be assigned to the Senate Rules Committee, which has 20 members.

High Tax Rates for Sportsbook Operators

One of the things to be highlighted in recent reports is that sportsbooks in New York are charged a very high rate of tax compared to other states. In fact, the tax rate stands at 51 percent, and this means that operators have to go a step further to boost their profits.

For many, offering these promotions and advertising special offers and deals is one of the ways in which they can entice new customers and stay a step ahead of the competition. However, many of the promotions that are advertised could lead to increased issues when it comes to addiction and gambling problems within the state, which is something that the bill has highlighted.