A bid to make the largest competitive market for state-regulated online sports betting even bigger is still alive in the New York legislature.
- A New York bill would require the state to expand its online sports betting market to at least 14 operators by early 2026 and 16 by early 2027 while introducing a sliding tax rate.
- The legislation has made little progress so far but could allow new sportsbooks to enter a market that currently has eight licensed operators.
- Lawmakers may reconsider the framework as federally regulated prediction markets grow and divert a small but notable share of activity from state sportsbooks.
Democratic Assemblywoman Carrie Woerner’s Bill A6013 was introduced last year but has again been referred to the chamber's Racing and Wagering Committee, which Woerner chairs.
The bill, which still has a long way to go before it becomes law, would require the New York State Gaming Commission to ensure that at least 14 online sportsbooks are operating in the state by Jan. 31 of this year, and then 16 by the same date in 2027.
“In the event that the commission fails to approve the required number of operators by these deadlines, it shall not interfere with the ability of previously licensed platforms or operators from continuing to operate in the state,” the legislation reads.
The bill also proposes an adjustable tax rate for online sports betting in New York, ranging from 64% if there are four or five operators in the state to as low as 25% if there are 15 or more. Even so, the licensing fee proposed for new operators would be steep at $50 million a pop.
New York sports betting restriction bills introduced this year:
— Ryan Butler (@ButlerBets) January 8, 2026
- Ban in-play sports betting
- Mobile sportsbook app push notification, text message ban
- Ban sportsbook ads during live sporting events
- Prohibit more than five deposits in a 24-hour period
Nevertheless, Woerner’s bill would, in theory, allow some fresh faces to join New York’s already significant online sports betting market.
Currently, there are eight licensed online sportsbooks in the state. The legislation would open the door for other brands, such as bet365, to apply for a license and potentially enter the market if they so choose.
Game-changer?
However, the legislation didn’t make any progress last year and may not again in 2026. There are also other gaming-related bills for New York lawmakers to consider this year, including legislation tied to controversial prediction markets.
Indeed, when A6013 was introduced last year, prediction markets were only just making inroads with their sports event contracts.
Those markets and contracts mean there is a form of federally regulated sports wagering now available across the U.S., New York included, competing for business with state-regulated sportsbooks. That could have some bearing on how state lawmakers feel about tweaking their online sports betting framework.
A note by Citizens analyst Jordan Bender this week said the investment bank is estimating that approximately 5% of legal sports betting handle is flowing now to prediction markets, or around $8 billion on an annualized basis. While that is just a sliver of online sportsbook handle in the U.S., within it lies a decent amount of betting in New York.
“In the dataset, New York, New Jersey, California, Washington, and Ohio are the top states by volume, although we would point out that larger bet sizes from more frequent users can skew the data,” Bender wrote.
![Jacksonville Jaguars place kicker Cam Little (39) follows his point after try during the second quarter of an NFL football matchup at EverBank Stadium, Sunday, Jan. 4, 2026, in Jacksonville, Fla. [Corey Perrine/Florida Times-Union]](https://img.covers.com/cms/covers/7b767c4a-ae77-41a6-be35-da34e49915a2.jpg?w=58&ar=58:58&?fp-x=0.5&fp-y=0.5&fp-z=2&fit=crop&auto=compress)
