When New York Gov. Andrew M. Cuomo delivers his State of the State message on Jan. 11, in addition to being virtual, it will contain proposals to legalize two sometimes controversial activities: marijuana use and online sports betting.
Cuomo said on Jan. 6 that his 2021 State of the State message will include a proposal to legalize and create a comprehensive system to oversee and regulate marijuana. A new Office of Cannabis Management would be created to oversee the new adult-use only program, as well as the state’s existing medical and cannabinoid hemp programs.
The plan would include creating a structure for marketing and selling marijuana to adults. Businesses would need to be licensed and the state would offer licensing opportunities and assistance to entrepreneurs in communities of color who, Cuomo said, have been disproportionately impacted by the war on drugs. According to Cuomo, once fully implemented, legalization of marijuana in the state could be expected to generate more than $300 million in tax revenue.
“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, but it also allows us to directly support the individuals and communities that have been most harmed by decades of cannabis prohibition.”
In 2018, the state”™s Department of Health conducted a multi-agency study which concluded that the positive impacts of legalizing adult-use cannabis far outweighed the negatives. It also found that decades of cannabis prohibition have failed to achieve public health and safety goals, and have led to unjust arrests and convictions, particularly in communities of color.
In 2019, Cuomo signed legislation to decriminalize the penalties for unlawful possession of marijuana. It also contained a provision to allow criminal records for certain marijuana convictions to be expunged.
The sale and use of cannabis products would be limited to adults who are at least age 21. There would be quality and safety controls including strict regulation of the packaging, labeling, advertising and testing of all cannabis products.
Also expected to be included in Cuomo”™s State of the State message will be a call for the passage of legislation to authorize online sports wagering in New York. Cuomo is due to propose that the New York State Gaming Commission issue a request for proposals to select and license a sports operator or platform to offer mobile sports wagering in New York. This operator or platform would be required to have a partnership with one of the existing licensed commercial casinos. The commission will also require that any entity operating mobile wagering apps include safeguards against abuses and gambling addiction.
Online sports betting is now legal in 14 states, including New Jersey and Pennsylvania. Sports betting is only allowed in New York at the four upstate commercial gaming facilities and Native American gaming facilities. An industry study found that nearly 20 percent of New Jersey’s sports wagering revenue comes from New York residents, costing New York millions of dollars in lost tax revenue.
“At a time when New York faces a historic budget deficit due to the Covid-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” Cuomo said. “New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the Covid-19 crisis.”
