A bill introduced in the New York state Senate to legalize and regulate sports betting in the state includes what many states have refused to include—an integrity fee for the leagues. However, a companion bill in the Assembly introduced by Assemblyman Gary Pretlow avoids calling it an “integrity fee,” opting instead for the moniker “sports wagering royalty.”
In the Senate bill, it’s not going to be automatic. In fact, the leagues will have to jump through some hoops to claim the fees under the bill. According go a copy of the legislation obtained by Legal Sports Report, the fee would be 0.25 percent of all wagers on a league’s games.
In the state Assembly, Pretlow’s bill would impose a “royalty” fee based on the percentage of wagering attributed to each sport.
Pretlow has railed against any integrity fee, previously calling the idea “disingenuous” and noting that the well-established sports books of Nevada have never paid such a fee; nor do regulated European markets that take bets on U.S. professional games.
The Senate bill has four requirements for the leagues to claim integrity fees: They must file an annual claim, submit an annual report on fees received, have that information from all leagues published in an annual report by the gaming commission, and have the fees be subject to audit by the commission.
At the Senate committee hearing, the NBA submitted written testimony asking for a “comprehensive sports betting bill that would serve as a model for a 50-state solution.”
