Legal New York Sports Betting - NY Betting Laws & Regulations 2022

Online gambling New York has gone through many ebbs and flows since 2013 when they first opened land-based casinos upstate. Things are seemingly looking up for punters who want to place sports bets online. 

Regulations were set in 2013 already for sports betting to be legalized in New York once federal legislation was altered. What they did not account for, was the regulation and legislation for online sports betting. Things are now changing on this front, as New York sports betting lovers won’t have to wait too much longer to bet online.

New York

Sports betting in New York - resistance to mobile sports betting

The New York sports betting history has been filled with ups and downs and a lot of difficulty. The first legal gambling allowed in the state happened in 2013 when up to 7 casinos were allowed to open. The interesting part about the whole thing is that the state of New York already put into place measures that would swiftly allow the legalization of New York sports betting once the federal prohibition was lifted. 

And so, it was lifted in 2018 with the removal of the PASPA legislation. This meant that sports betting could now legally take place in states throughout the US, depending on whether states would choose to allow it or not. As such, the Big Apple was well prepared and brick-and-mortar New York sports betting establishments were quickly made available through the casinos that had already been in operation for 5-years.

New York

Betting tax in New York - no state betting tax for New Hampshire betting fans

While you may not as of yet be able to use any online New York sports betting sites, you will still have to pay tax on your winnings at land based casinos. There are two types of tax you’ll need to pay on your winnings, one is state tax and the other federal tax. 

The current state tax of New York is dependent on what your annual gross income is. Unlike other states that have a flat percentage for everyone, the tax rate will vary on how much you earn. For example, if you are single and earn more than 21% a year you will pay 5.9% on your sports betting winnings. If you make more than $1 million a year you will have to pay 8.82%. So, even if you are in the highest bracket the tax rate is still quite fair, especially when compared to other states. The federal tax you have to pay is a flat 24%. This won’t change any time soon so you can rely on that being the same for now. 

In terms of actually paying your taxes, this will go two ways. For state taxes, the land-based casino you are using will submit your tax form (W-2G form) for you. All you have to do is provide them with some information about yourself like where to mail the form. You won’t have to really do anything for your state taxes as the casino keeps a record of all your sports betting wins and losses. However, you will still need to fill out the federal tax form yourself. This form is called the 1040, Schedule A. 

For both the state and federal taxes, irrespective of how much you earn every year, you will have to make more than $5,000 to pay tax. This means that if you made $5,000 cumulatively throughout the year on sports betting, you will then be charged a tax rate. So, if you are a casual punter who probably won’t make more than that then you need not worry about paying taxes on your wins. 

Betting restrictions in New York - what to keep in mind when sports betting

There are a couple of betting restrictions to keep in mind before you start sports betting in New York. Firstly, you will have to be above the legal gambling age which is currently set at 21-years of age or older. Identification will always be required when you set foot inside the casino/sports betting establishments. 

You won’t really have to worry about betting outside of state lines, as you can only use land-based casinos in New York right now. However, when online sports betting is officially up and running you will no doubt only be allowed to use a sportsbook New York online if you are physically located in the state. 

A restriction that is specific for when online sports betting in New York launches include the restriction on college sports betting. You won’t be able to bet on any of the in-state colleges. This has been placed into the legislation right from the get-go, so you won’t be able to bet on any college sports whatsoever. 

New York is one of the states that was adamant to approve online sportsbooks until recently, when online sports gambling went live. Every sportsbook operating in the region is regulated by the New York State Gaming Commission (NYSGC), ensuring safe gambling. 

The first sportsbook that started running in the state was FanDuel, followed by DraftKings, Caesars, and BetRivers. Other legal sports betting sites you can use to place sports bets in New York include Wynn, PointsBet, BetMGM, and Resorts WorldBET. Each of the mentioned sportsbooks is legal with competitive odds and exciting welcome bonuses. They also have extensive coverage of betting markets, making gambling easy.

Top 8 bookies for New York

Is New York sports betting legal?

As New York was well prepared for the legislation to be changed, they quickly adapted their already functional brick and mortar casinos to introduce New York sports betting capabilities. This happened officially in 2019. While the casinos were prepared to roll out sports New York betting there was still a decent amount of regulation to be done which is why it took almost a year for the sports betting venues to be fully up and running. 

As it stands, New York sports betting in-person is still only available at a few land-based casinos upstate. The casinos are situated well outside of the city and make it a bit of a pain for sports betting lovers to go out of their way to get there. Some of these punters are even making their way across state lines to the state of New Jersey to go and get their mobile sports betting done. For now, though, this is all that is available. 

Is mobile sports betting up and running?

No, not as of yet. New York has properly had the most difficult time getting their mobile sports betting regulated and operational. This is largely down to Governor Cuomo who has been wholly against the introduction of online sports betting in New York. His unwillingness to hear anything related to the introduction of New York sports betting online could not stand for much longer and it hasn’t. 

Ultimately, rules and regulations for mobile sports betting were approved in late 2019. As of April 2021, the legislation for online sports betting received approval. For now, online sportsbooks have yet to be introduced but punters in the Big Apple can expect sportsbooks to be rolled out sometime towards the end of 2021 or at the start of 2022. Until such a time as these sportsbooks are up and running, punters will have to make do with land-based casinos that offer sports betting.

Most popular bets In New York - strong backing for the NY teams

Despite the fact that you can’t as of yet use mobile sports betting in NY, there is still a strong correlation to betting on the local team at the brick-and-mortar establishments. New York has a plethora of some of the best teams in their respective leagues to choose from. 

No matter what sports you are most fond of, chances are New York has a team in the major league. For those that love football, you are spoilt for choice as you have both the New York Giants and the New York Jets to choose from. Both are massive football franchises with massive followings which is why so many sports bets are wagered on them in New York. 

If you are more of a baseball fan, well, the New York Yankees are arguably the most famous baseball team in the world. We’ve all seen a New York Yankees cap on someone's head at some point. The brand is massive and draws huge crowds for their games. Their support across the world is pretty much unmated in the MLB. As far as baseball bets go in New York, you’ll find most of them being wagered on the Yankees. 

We could hardly forget to mention the major NBA franchises in the New York Nets and the New York Knicks. Both have large following and split the support through the city right down the middle. Although the Knicks have probably got a slightly bigger following. Either way, most of your NBA bests in the Big Apple are being placed on these two huge NBA teams. 

Lastly, you won’t be surprised to find that most of the soccer bets are being put on the New York Red Bulls with a new host of bets being placed on the still fairly young team of New York City FC. Furthermore, the New York Rangers in the NHL make up the bulk of the ice hockey bets in the city. 

Are betting losses in New York tax deductible? Get a break on some of your losses 

Yes, you can deduct your sports betting losses as tax deductible. There are a few things to consider though. Firstly, you won’t be able to deduct more losses than you have winnings for the financial year. For example, if you won $18,000 throughout the year with your sports betting, you will then only be able to deduct $18,000 betting losses maximum. As Long as you don’t try to claim more losses than you have wins, your tax filing process will be straightforward.

As far as actually filing your tax for your New York sports betting wins, you will need to use an additional form in a Schedule A 1040. Once you have filled in the necessary information, your tax filing should be simple from there. Remember, always keep a detailed record of your wins and your losses. This is especially true for New York sports betting as you can only bet at land based casinos right now. Once online New York sports betting comes into play it will be much easier for you to keep this record.

Conclusion to our New York sports betting guide

That brings us to the end of our guide on New York sports betting. Remember, you need to be keeping a record of all of your wins and losses. If you are a casual bettor then perhaps you won’t need to, but it is always wise to do so anyway. This will make your life so much easier coming tax filing season, so it really is in your best interest to do so. 

Once New York gambling really kicks into high gear, punters will be able to enjoy online sports betting. The changes are on the horizon as it would seem that the online sportsbooks will be up and running by early 2022.

FAQs about betting In New York - everything you need to know

Is online sports betting legal in New York?

Yes, online sports betting is legal in New York. In 2021, the New York State Gaming Commission (NYSGC) chose nine apps to operate in the state, including BetMGM, Caesars, and FanDuel, among other top brands. By 2022, four apps were already operational. 

What sports can I bet on in New York?

All major leagues and many college sports are available for betting in New York (NY). The only restriction is that wagering on in-state college teams is prohibited. Top leagues you can bet on include the NFL, NBA, MLB and the NHL, among many others. 

Who can bet on sports in New York?

Anyone aged 21 years or older can place bets on sports in New York. Individuals not of age are barred from accessing online gambling sites. 

Who can get a sports betting license in New York?

Anyone who passes the criteria for owning a sports betting license can receive the permit. For instance, you must first register for a license with the New York State Gaming Commission (NYSGC) and pay all fees required.

Can I conduct New York sports betting online?

No, not at the moment. You can use land based casinos that have sports betting capabilities, but you are unable to use online sports betting in the Big Apple right now. However, this is going to change in the near future as online sportsbooks will come to New York by early 2022.

What happens if I don't pay my federal taxes?

Hopefully, you will never have to find out. However, if you fail to pay your federal taxes and your books are audited you will be hit with a tax rate increase on what you have failed to pay at that point. You may even receive additional penalties and fines as well.

What is the current legal gambling age in New York?

Some states differ in their legal gambling age which is why it is important to know for sure what the legal age in NY is. As it stands, you can only conduct legal sports betting in the Big Apple if you are over the age of 21.

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