New York State Online Sports Gambling Laws
Land-based sports betting has been legal in New York since 2019, following the strike down of PAPSA by the Supreme Court in 2018.[5] However, it took some years before online betting was allowed. In 2021, four companies - Caesars Sportsbook, DraftKings, FanDuel, and Rush Street Interactive were granted licenses by the state's gaming commission. Neighboring states have also followed New York's lead and legalized sports betting, with Vermont online sportsbooks launching recently.
However, after considerable initial interest, the NYSGC began a bidding process in which over 14 sports betting companies participated. Ultimately, nine were granted permits to operate and launch betting apps.[6] Therefore, you have plenty of options, but if you’re looking for something different, you can always visit one of the 21 land-based casinos.
There are three legal kinds of casino venues in the state – native, commercial, and racino. As a sports fan, we doubt table games and slots are your thing, but racino establishments might interest you. Many of them, including the iconic Long Island's Belmont Stakes and Saratoga's Travers, offer live horse racing and simulcast wagering.
While there are physical gambling venues in New York, playing slots or table games with real money on the Internet is not allowed. Currently, there are no plans to move on with legalizing online casinos, but at least players ages 18 or older can purchase lottery tickets online through the NY Lottery mobile app.
On the other hand, you must be at least 21 to visit any gambling establishments in NY or bet on sports online.[7] The same applies to online sports betting in Massachusetts, which is one of the neighboring states that recently legalized this form of gambling. In fact, that's the standard for the US, so there's no way around this strict rule.
Paying Taxes on New York Online Sports Betting Winnings
Suppose you register at one of the best betting sites in New York, and after wagering for a bit, you win a certain amount. After you're done celebrating, you must report all winnings on your federal income tax return. However, whether the tax of 12.7% must be paid depends on the size of the prize.
Wins under $5,000 are not subject to New York State withholding tax. However, they are subject to special accrual rules.[8] In any case, reporting the win is still required. If you need help, the NY Department of Taxation and Finance has shared a step-by-step guide to filing your tax return, which might be helpful.
Furthermore, according to the IRS page on gambling taxes the amount you must pay on winnings over $5,000 varies by state tax bracket. On top of this, the US federal government charges a tax rate of 24% on your net gambling winnings. However, that pales in comparison to the 51% of net revenues local sports betting providers must pay.