Racetracks support a bill that would allow a massive New Mexico gambling expansion. Although the expansion would occur at the five racetracks, the state lottery commission would supervise it.
According to estimates, the expansion would bring $40 million in taxes. The bill allotted $15 million to fund college sponsorships. As per sports news reports, the bill was unclear about how much the racetracks would get from the gambling expansion.
HB101 would not interfere with the tribal gambling compacts. At present, tribes have the monopoly over table games, such as blackjack, craps, wheel of fortune, roulette, and baccarat. The proposed bill would allow racetracks and lottery facilities to operate the table games. As a result, tribes would lose their exclusivity.
New Mexico Gambling Expansion
If lawmakers approve the bill, the tribes have the right to stop paying almost $80 million annually to the state. On the other hand, racetracks would bring $40 million in taxes each year. According to online casinos, $15 million would go to a scholarship fund. Thus, the state would be missing around $55 million if the tribes stop sharing their revenue.
The tribes don’t want to pay ten percent tax on online gambling and 15 percent tax on table games. However, they pay as much as 18 percent revenue sharing each year to the state. Sports betting experts expect a complicated legislative session due to the proposed gambling expansion.
The proposed gambling expansion would allow betting on the performance of individual players, in addition to the outcome of the games. Thus, prop bets will be legal in New Mexico once lawmakers passed the bill. It would bring more betting options in the state.
During the pandemic, states with legal online gambling benefit greatly from the sports betting industry. Online sports wagering brought additional income to the state as residents remain indoors.
