BILL NUMBER: S1490

SPONSOR: ADDABBO
 
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 authoriz-
ing gambling on professional sporting events and athletic events spon-
sored by universities or colleges

 
SUMMARY OF SPECIFIC PROVISIONS:

Article 1, Section 9 of the State Constitution would be amended to allow
for an additional exception to the prohibition on all gambling authoriz-
ing wagering on professional and collegiate sporting events at betting
facilities located at horse racing tracks, simulcast theaters operated
by off-track betting corporations, on mobile platforms, 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) aames of chance conducted by these same charitable, non-profit,
and religious organizations.

 
JUSTIFICATION:

Legalizing professional sports betting in New York would be an opportu-
nity to diminish. a serious organized crime enterprise and provide crit-
ical 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, en 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 dras-
tically 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 regu-
lations 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 organiza-
tions 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 educa-
tion related programs that are designed to address these social chal-
lenges as well as providing much needed revenue to support education in
general.

 
PRIOR LEGISLATIVE HISTORY:

2017:S1282A - REFERRED TO JUDICIARY

2018:S1282A - REFFERED TO JUDICIARY

 
FISCAL IMPLICATIONS:

Significant revenue potential for the 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 conform-
ity with section 1 of article 19 of the constitution, be published for 3
months previous to the time of such election.