New York Sports Betting Advocates Dealt Setback in Primaries

New York sports betting has long carried the highest tax rates in the nation. Tuesday’s Democratic primary results aren’t likely to do anything to change that.

Erie County deputy commissioner Karen Hoak lost her primary for the New York General Assembly’s 149th District seat to Adam Bojak, a Buffalo-based attorney. Bojak claimed 50% of the vote in a three-way race, with Hoak second at 33%. Kevin Deese, a local businessman, finished third.

Bojak’s win appears a crippling blow for supporters of iGaming in New York, as well as more favorable tax rates for New York sports betting. In the lead-up to the primary, a PAC called New York Future spent more than $350,000 on the race, all of it behind Hoak.

Bojak used that as fuel for his campaign. With popular incumbent Jon Rivera backing him, Bojak positioned himself as the candidate for Buffalo voters, as opposed to corporate interests. In an environment fueled by anger at the status quo, that message appeared to connect with western New York’s voters.

Why Did New York Sports Betting Advocates Care About This Race?

An opportunity opened when Sean Ryan vacated his seat in the New York Senate to run for mayor of Buffalo. Ryan won that race, leading Assembly member Rivera to run for Ryan’s old Senate seat.

That created an open seat in the 149th District, and New York sports betting interests saw an opportunity with Hoak. Had she won, it could have provided an important vote for bringing iGaming to New York and lowering the state’s tax rate for sports betting.

Multiple bills have been introduced on these issues, but none have made it out of committee. With legislative races among the cheapest in the country, pro-sports betting PACs have made investing in these races part of their strategy.

What Is Bojak’s Stance on New York Sports Betting and iGaming?

It’s unclear if Bojak opposes gambling, or simply wanted nothing to do with PAC money. Bojak says he was approached by New York Future, but did not take the meeting. His campaign refused to accept PAC donations, and that might have fueled his decision to refuse the meeting.

However, Bojak openly used New York Future’s support of Hoak to craft his own message. In his advertisements, Bojak called out both DraftKings and FanDuel by name and said that he would tax corporate interests in the New York legislature. That suggests that he’s highly unlikely to support anything that would reduce New York’s current sports gambling tax rate.

Given that the 149th District is highly Democratic, Bojak will almost certainly win the election in November and take the seat in January.

What Other Races Might Affect New York Sports Betting?

The night wasn’t a total loss for New York sports betting interests. State senators Joe Addabbo (D-Queens) and Toby Ann Stavisky (D-Queens) both advanced to the general election and will almost certainly return to the New York State Senate. Both have supported bills expanding gambling in the state.

Additionally, New York betting advocates received a potential unexpected boost from the 149th district at the Senate level. Rivera, who hasn't staked out a position on gambling, defeated incumbent Sen. Jeremy Zellner (D-Buffalo), who won the special election after Ryan vacated the seat. Zellner had crafted Senate Bill 10153, which would have created a task force to study prop bets. If Rivera merely takes a neutral approach, that would be an improvement over Zellner's attempts to rein in prop betting.

But changing the New York sports betting tax rate will now be harder, as will bringing iGaming to New York. Gov. Kathy Hochul isn’t inclined to support iGaming, and her opposition was a reason past bills went nowhere. With new representatives coming who also oppose changing the tax rate, it’s likely to remain an uphill climb in 2027.