Are New York bettors about to get hit with daily wagering limits?

A bill has been introduced in the New York state legislature which will curb daily betting activity

New York is the top state when it comes to sports betting activity, generating $22.6 billion in 2024 and creating more than $1 billion in revenue, according to SBC Americas. That's an 18% increase from 2023 despite New York having the highest tax rate in the United States on sports betting revenue at 51%. Operators are willing to accept that rate with the state's handle being what it is, but a new law could place further limits on New York bettors.

State Assemblyman Robert Carroll's proposed legislation would limit wagering to $5,000 per person per day. It would also limit bettors to making no more than five deposits in a day and would introduce restrictions on advertising of sports betting. This would include promotions for different sportsbooks during sports events, since the proposed time slot for these restrictions is from 8 a.m. to 10 p.m. ET. The bill is being touted as a health and safety measure against problem gambling.

Opponents of the bill say New York bettors will simply take their money across state lines to New Jersey and Connecticut if these limits are introduced, though the 51% tax rate didn't lead to that happening in significant numbers. The overall betting limit would make a dent in New York's overall handle, though, since large-scale bettors would be capped in what they can wager per day. It's unlikely advertising for sports betting gets curbed, since this would require further regulation across media companies rather than just across betting operators. That portion of the law is most likely to get pushed back against, since it would impact businesses beyond the sportsbooks.

There's a possibility sportsbooks will forfeit their licenses with these additional regulations, although that seems unlikely given the betting revenue being generated. Even if bettors do decide to go to New Jersey or Connecticut to place wagers, they are unlikely to do so in numbers large enough to make major dents in New York's status as the top sports betting state in the country.

The bill has been referred to New York's Racing and Wagering Committee for further review.