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On Wednesday, Jan. 6, Cuomo said that while New York will be turning to the federal government to provide some aid and COVID-19 relief funding, the state will also be doing its part to cut the deficit.
Among the two options Cuomo discussed was a proposal to legalize and regulate cannabis in New York and running a legal sports betting program that benefits the state, not casinos.
“We want to do sports betting the way the state runs the lottery, where the states get the revenues. Many states have done sports betting, but basically allow the casinos to run their own gambling operations,” he said. “That makes a lot of money for the casino, but minimal money for the state.
“The second is recreational marijuana, which is something that should have been legalized years ago,” Cuomo said. “We’ve seen too many incarcerated or punished for minor infractions, and too many Black, Latino, or poorer members of the community are facing an injustice of the justice system. So that’s something I’ve supported for years.”
Robert Mujica, the state’s Budget Director, said that sports betting could theoretically raise up to $500 million a year, and once the legalized marijuana program is up and running and fully operational, it could generate upwards of $300 million annually.
“The narrative is that the state is losing billions of dollars to sports betting in other states, but the reality is that the billions being wagered and money being made are not being made by the taxing jurisdiction,” Mujica added.
“Marijuana has a longer runway, but by the time you set it up, and by the time it’s fully effective, our proposal says it should net about $300 million,” he said. “But it will take several years to get up to those numbers.”
According to Cuomo, under the proposal, which is expected to be unveiled during next week’s “State of the State” address, a new Office of Cannabis Management would be created to oversee the new adult-use program, as well as the State's existing medical and cannabinoid hemp programs.
Additionally, “an equitable structure for the adult-use market will be created by offering licensing opportunities and assistance to entrepreneurs in communities of color who have been disproportionately impacted by the war on drugs.”
“Despite the many challenges New York has faced amidst the COVID-19 pandemic, it has also created a number of opportunities to correct longstanding wrongs and build New York back better than ever before," Cuomo said.
"Not only will legalizing and regulating the adult-use cannabis market provide the opportunity to generate much-needed revenue,” he added. “But it also allows us to directly support the individuals and communities that have been most harmed by decades of cannabis prohibition."
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