Cuomo: Legalize Recreational Marijuana, Online Sports Betting

LONG ISLAND, NY — With New York facing a $15 billion revenue deficit amid the coronavirus pandemic, Gov. Andrew Cuomo on Wednesday called for the legalization of recreational marijuana and online sports gaming.

Cuomo will detail his plans during his State of the State address Wednesday afternoon.

Legalizing recreational marijuana would generate more than $300 million in tax revenue, he said.

"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 in a statement. "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."

Under the governor's proposal, a new Office of Cannabis Management would be created to oversee the new recreational program, as well as the state's existing medical and cannabinoid hemp programs. In addition, an "equitable structure" for the market would be created by offering licensing opportunities and help to entrepreneurs in communities of color who have been disproportionately affected by drug policies, Cuomo said.

In 2019, Cuomo signed legislation to decriminalize marijuana possession and expunge certain marijuana convictions. He also convened a multi-state summit that year to discuss legalization of recreational marijuana.

The governor said legalizing online sports betting would also generate millions in 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."

Under his proposal, the New York State Gaming Commission will issue a request for proposals to select and license a sports operator or platform to offer mobile sports wagering. The operator or platform would need to have a partnership with one of the existing licensed casinos; the commission would also require any entity operating mobile wagering apps include safeguards against abuse and addiction, he said.

In 2018, the U.S. Supreme Court overturned a federal law prohibiting most states from authorizing sports wagering. Sports wagering is now legal online in 14 states, including New Jersey and Pennsylvania, while it is only legal in New York at the four upstate gaming facilities and Native American gaming facilities.

A study found that nearly 20 percent of New Jersey's sports wagering revenue comes from New York residents, meaning millions of dollars in lost tax revenue, Cuomo said.

Also on Wednesday, Cuomo said he will no longer be attending a Buffalo Bills playoff game and will instead give his ticket to a nurse from Erie County Medical Center. The Bills plan to allow fans into the stadium if they test negative for the coronavirus. Fans have been banned from Bills Stadium so far this season.