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Tax Revenues From Cannabis Set to Take a Hit With Mobile Sports Betting Taking the Lead in New York State

New York has set a benchmark in its contribution for legalizing both cannabis for adult use and mobile sports betting. A much higher state budget will be allocated, and online sports wagers are set to overtake cannabis in their share of tax revenues. 2025 will see the same surpassing a whopping 100 percent.   

The state budget saw a 10 percent rise in its total estimation since last year. The figure was a generous 212 billion dollars for 2021. 

A recent report by Thomas DiNapoli, the New York State Comptroller who reviewed the budget, specified the reasoning that denounced the allocation. 

The major driving force was the sizeable figures accrued in federal aid and newer revenues that accounted for an increase in taxes. 

The total amounted to 12.6 billion dollars. While several other factors also led to the budget growth. This includes legalizing recreational cannabis and sports betting online that summed up the total valuation at 26.7 billion dollars. 

DiNapoli has laid down estimates. A clear indication that directs 20 million dollars as tax revenues from legalized cannabis while a much higher figure is estimated for online sports betting. An assumed 99 million dollars would result in a staggering 395 percent difference.

Eighteen months have been given as the time limit till legalized cannabis can start selling. This directs all efforts to the first half of 2025, so there will be plenty of time for both programs to flourish.

The figures could be something along 245 million dollars for cannabis and 493 million dollars for sports betting online, as predicted by DiNapoli. 

The adult-use cannabis bill was passed by the lawmakers in New York and designated a law in the latter half of March. Some estimates predict seizing a chunk of the sales share amounting to 1.2 billion dollars by 2023 through cannabis. One that is only set to soar to 4.2 billion dollars by 2027.

One of the bigger ventures for which the state budget has been allocated is online sports betting, especially after it having been granted legal status in April in New York. There are two betting companies in the line-up for receiving the license awards.

This will be after the process of asking for bids across mobile betting platforms by the New York Gaming Commission is completed.

January 1 is the date set for awarding licenses, after which gamblers can start placing their bets for the Super Bowl slated for 2022. 

The legalization of Sports Betting is one of the significant changes to have happened in New York.

By Joey Edmiston

Senior Editor, Joey Edmiston presently works with Casino.tires. He has over five years of experience in editing the content and has a keen interest in betting. Also, Joey plays online sports betting games and shares his experience through blogs.

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