Authorizes gambling on professional sporting events and athletic events sponsored by universities or colleges

BILL NUMBER:S7401A

Title of bill

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to section 9 of article 1 of the constitution, in relation to authorizing gambling on professional sporting events and athletic events sponsored by universities or colleges

Summary of provisions

Article 1, Section 9 of the State Constitution would be amended to allow for an additional exception to the prohibition on all gambling authorizing wagering on professional and collegiate sporting events at betting facilities located at horse racing tracks, simulcast theaters operated by off-track betting corporations and in any constitutionally authorized casino facility as may be prescribed by the legislature, the net proceeds of which shall be applied exclusively to or in aid or support of education.

Existing law

Article 1, Section 9 of the State Constitution generally proscribes an gambling except for four exceptions. These four exceptions are: (1) pari-mutuel wagering on horse racing; (2) State lotteries; (3) bingo conducted by certain charitable, non-profit and religious organizations; and (4) games of chance conducted by these same charitable, non-profit, and religious organizations.

Justification

Legalizing professional sports betting in New York would be an opportunity to diminish a serious organized crime enterprise and provide critical funds for education.

According to the New York State District Attorney's Offices in both Kings and Queens Counties, illegal sports betting generates more than $380 billion a year nationwide, and approximately $38 billion a year in New York City alone. While our law enforcement agencies do their best to stop this criminal industry, it is an extremely lucrative criminal enterprise for organized crime and one that has grown steadily over the past 3 decades. State regulation of professional sports betting would drastically reduce profits for organized crime as was the intent of the New York State Legislature in 1982 when it sought to achieve similar goals in creating Off-Track Betting. In addition, strong gaming control regulations would help to abate any concerns regarding game fixing and other potential abuses.

Furthermore, if the state were to legalize and regulate this industry it would provide a tremendous source of revenue that could be used to provide much needed funding for various services, such as education. One estimate from The Partnership for New York City, suggests the city of New York could receive as much as $1.9 billion a year in revenue if professional sports gambling were permitted in the current locations where gambling in

authorized in the state. This amount would then increase with the recently proposed casino facilities.

Finally, the thrust of this legislation is regulation, not promotion.

While there are legitimate concerns related to the social challenges that arise from problem gambling, this activity already exists on a nationwide level and certainly within this state. The illegal organizations that are unlawfully benefitting from this industry are certainly not concerned with addressing these challenges and instead benefit from them. If New York were to allow professional and collegiate sports betting the money received by the state could be used to support education related programs that are designed to address these social challenges as well as providing much needed revenue to support education in general.

Legislative history

New Bill.

Fiscal implications

Significant revenue potential for state.

Effective date

If agreed by the Senate and the Assembly, the amendment will be referred to the first regular legislative session convening after the next succeeding general election of members of the assembly, and, in conformity with section 1 of article 19 of the constitution, be published for 3 months previous to the time of such election.