Sin stocks – mainly alcohol, tobacco, and gambling – may carry a bad reputation, but they are big business and can bring solid returns to investors. And, in an important piece of news that happened last week, the State of New York has officially legalized online sports betting. The gaming outline was included in the state’s regular budget proposal, as the legislature saw legalized sports betting as a vehicle for increased tax revenue. Governor Cuomo signed the bill.
Included in New York’s outline for bringing online sports betting into play are provisions for platform providers to bid on acquiring the two available legal applications. The selected providers will pay a one-time fee to the state of $25 million each, and their operations will be subject to a minimum tax rate of 13%. Terms of the bill will allow betting on both professional and college sports, as long as no New York college is involved in the actual sporting event.
New York’s bill is an important step in an overall trend toward more legalized gambling in the US. More than two dozen states now have legal sports betting – although in many, bets have to be placed in person. Moving the service online, as New York is…
