Senate Bill S10259

                                 
BILL NUMBER: S10259

SPONSOR: BYNOE
 
TITLE OF BILL:

An act to amend the economic development law, in relation to prohibiting
mobile sports wagering operators from being eligible to receive the
excelsior jobs program credit

 
PURPOSE:

This legislation simply prohibits sports wagering operators from receiv-
ing the Excelsior Jobs Program tax credits.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends subdivision 5 of section 353 of the
economic development law, as amended by section 2 of part K of chapter
59 of the laws of 2015 to prohibit a business who is a sports wagering
operator from receiving the Excelsior Jobs Program Credit.  This reads
as follows:

              

"Section 1. Subdivision 5 of section 353 of the economic development
law, as amended by section 2 of part K of chapter 59 of the laws of
2015, is amended to read as follows:

5.  
A The following entities, including any parent company or subsid-
iary thereof, shall not be eligible to receive the tax credit under this
article or any component thereof: (a) a not-for-profit business enti-
ty 
,; (b) a business entity whose primary function is the provision of
services including personal services, business services, or the
provision of utilities 
, AND; (c) a business entity engaged predomi-
nantly in the retail or entertainment industry, other than a business
operating as an entertainment company as defined in this article and
other than a business entity engaged in music production 
, AND; (d) a
company engaged in the generation or distribution of electricity, the
distribution of natural gas, or the production of steam associated with
the generation of electricity  
ARE NOT ELIGIBLE TO RECEIVE THE TAX CRED-
IT DESCRIBED IN THIS ARTICLE; and (e) a mobile sports wagering opera-
tor, as defined by section thirteen hundred sixty-seven of the racing,
pari-mutuel wagering and breeding law."

Section 2 provides that the act shall take effect immediately. This
reads as follows:

"§ 2. This act shall take effect immediately."

 
JUSTIFICATION:

On February 23rd, 2026, Governor Hochul announced that Fanatics would be
receiving up to $5 million in performance-based Excelsior Jobs Program
tax credits. As Fanatics runs several services including Fanatics
Betting & Gaming, this would allow taxpayer money to subsidize a sports
betting operator.

This is especially concerning, given an increasing number of New Yorkers
have been developing problem gambling addictions since the legalization
of mobile sports betting in 2021 and app launches in 2022.

According to the Office of the New York State Comptroller in 2023, calls
to the problem gambling hotline are on the rise as gaming expansion
continues. The Office also states that, "Research indicates higher rates
of gambling problems occur among individuals wagering with a mobile
device, enabled by the accessibility, privacy and ease of smartphone
use."

This bill would help prevent worsening problem gambling addiction in the
state by prohibiting sports wagering operators from receiving the
Excelsior Jobs Program tax credits.

 
LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately