As regulations stand now, just 1 percent of revenue from sports betting in New York goes to problem gambling issues. To help with fund allocation, the state is preparing to create a Problem Gambling Advisory Council, which the legislature recently approved to help address the issue of gambling addiction in the state, according to NY Online Gambling.
The legislation, sponsored by Senator Alessandra Biaggi and Assemblywoman Linda Rosenthal, unanimously passed before the legislative session ended this month and awaits Governor Kathy Hochul’s signature. Once signed, it will take effect in 180 days.
Since the launch of mobile sports wagering in January, the state has seen more than $8 billion in wagers placed with the eight licensed sportsbook operators. The state’s gaming commission is in the process of issuing three more casino licenses for the New York City area, and some legislators have signaled their support for broadening sports betting and allowing iGaming in New York.
As for the newly created council, its aim will be to make findings and recommendations to the governor and legislature on how to prevent and treat problem gambling.
“The legalization of mobile sports betting brought higher than forecasted educational funds and revenue to our state, and the recent approval of downstate casino licenses will create jobs and additional resources,” Senator Joseph Addabbo Jr., chairman of the Senate Racing, Gaming and Wagering Committee and a co-sponsor of the legislation, said in a press release. “But this legislation demands that we have not forgotten that we must prioritize problem gambling and address it in a timely, proactive manner.”
The council will consist of 13 members, including the commissioner of the state’s Office of Alcoholism and Substance Abuse, the chair of the state gaming commission and 11 additional members.
A survey by the state’s Office of Alcoholism and Substance Abuse found 5 percent of adults are problem gamblers within the past year, while 10 percent of students in grades 7 to 12 showed signs of problems or required treatment. The survey did not note whether anyone underage had been permitted to wager at the state’s online sports books.
The three casinos which the gaming commission will select have to send $500 a year into the gaming revenue fund for every slot machine or table game the agency approves. Those funds will go for problem gambling education and treatment on top of the 1 percent.
