Governor Hochul Announces Nearly $2 Billion in Wagers Over the First 30 Days of Mobile Sports Wagering

 

Record-Breaking Success Generates Over $70 Million In Tax Revenue with Nearly All Directed to Education; Youth Sports and Problem Gambling Also Benefiting

 Governor Kathy Hochu ltoday announced the successful launch of mobile sports wagering in New York State, with nearly $2 billion in wagers taken during the first 30 days of operation. This record-breaking success, more than any other state has ever reported, will generate more than $70 million in tax revenue for New York State, providing funds to be allocated toward programs that support education, youth sports, and more.

"Over the past month, we've seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more," Governor Hochul said. "As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all."

Mobile sports wagering began in New York State on January 8, 2022; since then, more than $1.98 billion in wagers has been taken in New York. The total Gross Gaming Revenue was over $138 million and, at a 51% tax rate for the State, these wagers brought more than $70.6 million in tax revenue. According to State law, tax revenue generated by the mobile sports wagering industry is required to go toward elementary and secondary education, grants for youth sports programming, property tax relief, and problem gambling prevention, treatment and recovery services. 

Last year, Governor Hochul directed the New York State Gaming Commission to prepare for the launch of mobile sports wagering, which had previously been authorized by the legislature, by engaging licensed companies to complete the regulatory requirements needed to begin operations in New York State. This approach will keep New York bettors in New York, rather than having State residents travel to neighboring states to wager.

Gaming Commission Executive Director Robert Williams said, "With Governor Hochul kicking off mobile sports wagering on January 8th, there is no doubt there is strong interest in online sports betting in the Empire State, which has just set a national record for monthly tax revenue."  

OASAS Commissioner Chinazo Cunningham said, "OASAS is committed to ensuring that individuals and families in need of assistance for problem gambling have access to all available supports and resources in our State. The revenue from the launch of mobile sports gambling will provide much needed financial support to problem gambling prevention, treatment and recovery services."

On January 6, 2022 the Commission authorized four platform providers and operators - Caesars, DraftKings, FanDuel, and Rush Street Interactive - to commence operations effective January 8, 2022. Since that time, 3 more operators have commenced operations - Bet MGM, Points Bet and Wynn Interactive. All major operators in the United States were included in the submitted bids with 8 platform providers and 9 operators selected.

According to GeoComply, a software firm used by sports books to ensure geolocation requirements, more than 1.76 million unique player accounts were utilized for over 187 million transactions. Geolocation is performed on a continuous basis to ensure patrons are located within the boundaries of New York state when placing their wagers.     

For FY 2022 (January 8, 2022 - March 31, 2022), 98% of the state tax imposed on mobile sports wagering will fund education, 1% of the state tax will fund sports programs for underserved youth and 1% of the state tax will fund problem gambling education and treatment. All of the license fees revenue is directed to education. The FY 2023 Executive Budget Financial Plan projects $249 million in revenue, which includes $200 million in already collected license fees in FY 2022, $357 million in FY 2023, $465 million in FY 2024, $493 million in FY 2025, $509 million in FY 2026 and $518 million in FY 2027. Effective FY 2023, $6 million will be directed to programs addressing problem gambling, $5 million will be directed to youth sports grant programs statewide, and the remaining amount will be directed to education.

Wagers included over $600M on football, over $540M on basketball and nearly $80M on hockey. The figures from yesterday's Super Bowl will be included in the weekly Mobile Sports Wagering Reports, updated on Fridays, found here.

The Commission implemented regulations requiring operators to prevent underage gaming, provide bettors the availability to impose spending limits, and provide information on the risks associated with gambling and signs of problem gambling.  New Yorkers struggling with a gambling addiction, or who know someone who is, can find help by calling the State's toll-free, confidential HOPEline at 1-877-8-HOPENY (1-877-846-7369) or by texting HOPENY (467369).  

MAYOR ADAMS SHUTS DOWN ILLEGAL HOTEL OPERATOR, ANNOUNCES PLAN TO CREATE 80 NEW AFFORDABLE HOMES ON UPPER WEST SIDE

 

City and Fortune Society Will Partner to Create More Than 80 Affordable Homes in High-Cost Neighborhood for Low-Income and Formerly Homeless New Yorkers

 

$1.1 Million Settlement Ends Decade-Long Legal Battle With Notorious Hotel Operator

  New York City Mayor Eric Adams today announced a settlement that paves the way for the creation of 82 affordable homes for low-income and formerly homeless New Yorkers at 258 West 97^th Street on the Upper West Side of Manhattan. The $1.1 million settlement between the city — led by the Mayor’s Office of Special Enforcement (OSE) — and illegal hotel operator Hank Freid and his company ends a decade-long legal battle to protect tenants and housing stock at buildings Freid owned and operated as illegal hotels, including dozens of apartments in this building illegally used for short-term rentals. The lawsuit has generated nearly $2 million in total penalties and stopped the illegal use of more than 300 Manhattan homes in this building and two other illegal hotels.

 

“Today, we are not only shutting down an illegal hotel operator but also creating 80 new affordable homes for New Yorkers struggling to get by,” said Mayor Adams. “The old approaches to the affordable housing crisis are no longer enough — which is why my administration is pursuing bold, innovative strategies like this one to create housing New Yorkers can actually afford. We need a response with the urgency to match the crisis, and we will explore every opportunity, in every corner of the city, to create the affordable housing New Yorkers need and deserve.”

 

“The mayor has said, time and time again, that affordable housing is a top priority for this administration, and this work proves it,” said Chief Housing Officer Jessica Katz. “This administration is not going to stand by and let bad actors misuse apartments that New Yorkers need. I want to thank the members of the administration for fighting to preserve these homes and our partners at the Fortune Society for ensuring that they will help some of our most vulnerable neighbors.”

 

The Fortune Society has acquired the building and is working with the Department of Housing Preservation and Development (HPD) and the Department of Social Services (DSS) to turn it into 100 percent affordable housing, with rent protections, rehabilitation, and social services on site. This effort will create 82 total rent-restricted affordable apartments: 58 homes for formerly homeless New Yorkers, nine homes to be filled through the city’s affordable housing lottery portal, Housing Connect, and 15 units for existing tenants who will receive additional protections from the city to maintain their affordable rents. There will also be one super’s unit.

 

“The city will use every tool it has to hold accountable illegal operators who turn housing into hotels,” said OSE Executive Director Christian Klossner. “After over a decade of enforcement and litigation, this owner’s illegal hotel empire is closed for business, proving that defying the law and depleting the city’s housing stock is a costly proposition.”

 

“I am proud of the work the Law Department has done to defeat these baseless lawsuits the operator brought against the city and to support the efforts to shut down this illegal hotel,” said Corporation Counsel Georgia M. Pestana. “Along with our agency partners, we helped pave the way for this deal, which will improve the quality of life for many New Yorkers. We will remain vigilant and take appropriate legal action against any owner who thinks they are above the law.”

 

“The Office of Special Enforcement and its sister city agencies deserve extraordinary accolades for closing this illegal hotel,” said JoAnne Page, president and CEO, Fortune Society. “As the new building owner and a nonprofit with decades of experience serving people impacted by the justice system and developing award-winning housing, the Fortune Society is deeply gratified and proud to be part of an effort that will lead to the creation of desperately needed safe, affordable permanent housing in a neighborhood of opportunity.”

 

Under the terms of this settlement, the city will receive a permanent injunction against illegally using or advertising the property for short-term rentals. Additionally, the city will receive $622,550 in penalties for sustained illegal activity and $477,450 to pay for 333 violations issued by OSE inspectors — including $306,450 for 270 illegal occupancy and safety violations and $171,000 for 63 violations issued for illegally advertising the buildings for short-term rentals. The settlement also results in the dismissal of Freid’s lawsuits challenging state law and the city’s enforcement.

 

Freid’s business entities were the first to receive violations for illegal advertising under a 2016 law. The portions of the lawsuit involving the other two illegal hotels were settled previously. The city obtained $521,500 in settling claims related to 230 West 101^st Street, which Freid operated as the Broadway Hotel and Hostel, and $274,000 for claims tied to Freid’s flagship Marrakech Hotel at 2686-2690 Broadway.

 

“Illegal hotel operations put tenants in harm’s way, creating displacement pressures and degrading their quality of life,” said Ricardo Martínez Campos, acting director, Mayor’s Office to Protect Tenants. “My office applauds the persistent work of the Mayor's Office of Special Enforcement and its sister agencies to protect existing tenants and ensure the city's precious housing stock is put to its right and legal use.”

 

“As New York City recovers from the COVID-19 pandemic, this administration intends to seize this opportunity for change to reimagine how we can more effectively use our existing supply of residential and commercial buildings to address the city’s housing affordability crisis,” said DSS Commissioner Gary Jenkins. “I thank our partners at OSE for their dedication to bringing this important settlement across the finish line and look forward to continuing the work with HPD to ensure low-income and formerly homeless New Yorkers have access to quality affordable housing.”

 

“The housing affordability crisis is one of the primary drivers of homelessness in New York City,” said Department of Homeless Services Administrator Joslyn Carter. “Today’s announcement underscores this administration’s commitment to developing new and innovative tools we can utilize to connect New Yorkers experiencing homelessness to permanent, affordable housing and help them return to independent living.”

 

“Today’s announcement highlights this administration’s ‘Get Stuff Done’ approach to supporting New Yorkers in need,” said Human Resources Administration Administrator Lisa Fitzpatrick. “DSS-HRA is proud to have helped our qualified provider partner acquire this building as we work together with them and our agency colleagues to create new affordable housing for New Yorkers experiencing housing instability and homelessness.”

MAYOR ADAMS ANNOUNCES OPENING OF WELLNESS ROOMS FOR FRONTLINE HEALTH CARE WORKERS AFTER $100,000 DONATION FROM ANONYMOUS DONOR

 

Donation Will Fund Wellness Rooms at Clinics in Bronx and Brooklyn

 

Wellness Rooms to Provide Peer Support, Respite, and Healing to Health Care Workers at NYC Health + Hospitals/Gotham Health Clinics

 New York City Mayor Eric Adams today announced that the city will open wellness rooms at two NYC Health + Hospitals/Gotham Health clinics, providing support and resources to city health care workers. An anonymous $100,000 donation will fund spaces at NYC Health + Hospitals/Gotham Health Belvis and Cumberland. These essential wellness spaces will provide respite and support for health care workers who have served in some of the hardest-hit neighborhoods of New York City during the COVID-19 pandemic. The new rooms, expected to open later this year, will provide a quiet place for frontline workers to recharge, de-stress, heal, and emphasize the importance of taking a break and taking care of themselves during the workday. The announcement comes as Mayor Adams hosts a Super Bowl watch party for first responders from all five boroughs.

 

“Our frontline health care workers and first responders have kept New York City safe for the past two years of this pandemic and this generous donation will ensure that these heroes have the support and resources they deserve to recharge and continue serving thousands of fellow New Yorkers,” said Mayor Adams. “I thank this anonymous donor for recognizing all that our health care heroes have done and our first responders for putting their lives on the line every day.”

 

“Wellness centers with access to comprehensive resources is exciting and critically important news for our health care workers,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “To be able to serve their patients fully, our frontline NYC Health + Hospitals workers need support to recharge and recover from accumulated stress. We are grateful to every nurse, doctor, and hospital staff person who has done their job to keep us safe and treat us in our most vulnerable times.”

“Wellness rooms are an essential part of our Helping Healers Heal program, and this donation will allow us to expand to two additional clinic sites,” said NYC Health + Hospitals President and CEO Mitchell Katz, MD. “As we enter the third year of the pandemic, these rooms have become ever more important to the health and well-being of health care heroes.”

“I’m appreciative of the support that we have received from an anonymous donor for our health care heroes on Super Bowl Sunday,” said NYC Health + Hospitals/Gotham Health CEO Michelle Lewis. “The pandemic has been extremely challenging for many of our frontline health care workers that have worked tirelessly to protect our communities. These new wellness rooms will ensure that our health care heroes have a place to gather their thoughts and take a moment for themselves.”

 

“We are so grateful to our anonymous donor for ensuring that our frontline workers know that they are the true champions of Super Bowl Sunday,” said NYC Health + Hospitals Senior Vice President for External and Regulatory Affairs Deborah Brown, JD, MSW. “This wonderful generosity will serve as a model to so many caring New Yorkers who want to show their thanks for our hard working heroes. “ 

 

These respite rooms are part of the health system’s Helping Healers Heal (H3) program. H3 is a peer support program that was expanded to be a holistic proactive and preventative well-being program during the early weeks of the COVID-19 pandemic to ensure employees’ emotional, environmental, intellectual, financial, occupational, physiological, social, and spiritual wellness needs were being addressed. 

 

H3, in partnership with NYC Health + Hospital’s Office of Behavioral Health, is made available to all employees and aims to help identify and monitor distress, as well as to assist staff in resilience-building, while aiding the utilization of recovery resources and coping support services. Wellness Rooms provide staff the opportunity to take a break and engage in well-being activities, such as mindfulness, peer support, and wellness events to allow thoughts and feelings to be expressed and shared verbally and nonverbally using the healing powers of creativity and art. Wellness Rooms are an established space for peer engagement, for frontline staff to share their experiences in a safe environment with other staff members who were experiencing similar stressors with the intention to bring greater awareness to support resources. 

 

New Yorkers seeking to support NYC Health + Hospitals can contact Philanthropy@nychhc.org.

 

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - FEBRUARY 13, 2022

 

3,583 Positive Cases - Lowest since October 25

Statewide Positivity Rate is 2.28% - Lowest Since October 31

3,588 COVID-19 Hospitalizations - Lowest Since December 12

Cases and Hospitalizations Continue to Decline Across All Regions

50 COVID-19 Deaths Statewide Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.

"I am so proud of the hard work New Yorkers have put in this winter to get us past the Omicron surge and put us on the pathway to normalcy," Governor Hochul said. "The vaccine is still the most effective weapon we have in beating this pandemic, which is why it's so important that we continue to encourage New Yorkers to take advantage of this critical tool. Parents and guardians, don't delay in getting your children vaccinated and boosted if eligible."

Today's data is summarized briefly below:

• Test Results Reported - 157,244
• Total Positive - 3,583
• Percent Positive - 2.28%
• 7-Day Average Percent Positive - 3.19%
• Patient Hospitalization - 3,588 (-295)
• Patients Newly Admitted - 371
• Patients in ICU - 608 (-27)
• Patients in ICU with Intubation - 352 (-17)
• Total Discharges - 280,983 (+609)
• New deaths reported by healthcare facilities through HERDS - 50
• Total deaths reported by healthcare facilities through HERDS - 54,125

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.

• Total deaths reported to and compiled by the CDC - 67,779

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.

• Total vaccine doses administered - 36,479,837
• Total vaccine doses administered over past 24 hours - 43,257
• Total vaccine doses administered over past 7 days - 295,857
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 91.4%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 82.5%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 85.1%
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 80.6%
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 70.5%
• Percent of all New Yorkers with at least one vaccine dose - 80.7%
• Percent of all New Yorkers with completed vaccine series - 72.6%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 88.2%
• Percent of all New Yorkers with completed vaccine series (CDC) - 74.8% 

Disbarred Attorney Pleads Guilty To $5 Million Cryptocurrency Fraud

 Damian Williams, the United States Attorney for the Southern District of New York, announced announced that PHILIP REICHENTHAL, a disbarred attorney, pled guilty in Manhattan federal court to conspiracy to commit wire fraud, in connection with a scheme to defraud investors who believed they were purchasing Bitcoin.  Reichenthal engaged in the scheme with Randy Craig Levine, a/k/a “Viktor Lapin,” a/k/a “Andre Santiago Santos Galindo,” a/k/a “Alexander Martinez Lavrov,” a/k/a “Alexander Kozlov,” a/k/a “Hristo Danielov Marinov,” an international fugitive who fraudulently induced victims to send millions of dollars to REICHENTHAL, who was a licensed attorney at the time of the fraud.  REICHENTHAL falsely represented that he would act as an escrow agent for the transactions, but instead, he sent a substantial portion of the money to Levine, before any Bitcoin was provided by Levine to investors.  Neither Levine nor REICHENTHAL ever provided any Bitcoin or refunded the investors’ money.

REICHENTHAL was arrested on September 14, 2020, and pled guilty before U.S. Magistrate Judge Debra Freeman.    

U.S. Attorney Damian Williams said: “As a licensed attorney and escrow agent, Philip Reichenthal was entrusted to keep investors’ money safe. But as he admitted today, he betrayed that trust by siphoning millions of dollars of investor money.  Now he stands guilty of wire fraud and awaits sentencing for his crime.”

As alleged in the Complaint and Indictment filed against REICHENTHAL, as well as his co-conspirator Levine,[1] and other statements made in open court:

The charges against Levine and REICHENTHAL involve two fraudulent schemes.  In the first fraudulent scheme, in approximately June and July 2018, Levine induced another individual, the principal of a purported cryptocurrency escrow firm (“Individual-1”), to wire to REICHENTHAL over $3 million of funds from an over-the-counter cryptocurrency broker (“Company-1”) to fund the purchase of Bitcoin after falsely telling Individual-1 that Levine would sell thousands of Bitcoin, when in truth and in fact, Levine never intended to sell Bitcoin.  After receiving the $3 million, REICHENTHAL, in turn, wired over $2 million to bank accounts in Guatemala held in the name of one of Levine’s aliases.  Levine then lied to Individual-1 for days about why the deal had not worked out, the status of the purported Bitcoin, and the location of Company-1’s money, which was never returned.

In the second fraudulent scheme, from approximately February 2019 to May 2019, Levine induced a Florida resident involved in brokering Bitcoin transactions (“Individual-2”) to cause investors to send to REICHENTHAL over $2 million of the investors’ money to fund the purchase of Bitcoin.  Again, Levine told Individual-2 that Levine would sell Bitcoin, when in truth and in fact, Levine never had any intention of selling Bitcoin to the investors. After receiving the funds from the investors, REICHENTHAL, in turn, sent over $1.9 million to bank accounts in Mexico controlled by Levine; the money was then wired to a bank account in Russia held in the name of one of Levine’s aliases.  Levine then lied to Individual-2 and an investor about the status of the investors’ funds, which were never returned. 

In connection with the above transactions, Levine used, among other things, various false aliases to communicate with the individuals sending funds to REICHENTHAL and foreign bank accounts held in his false names.  REICHENTHAL used bank accounts held in the name of his law firm and an attorney trust account to receive the funds and the pass them to Levine, before he or investors received the Bitcoin, contrary to REICHENTHAL’s and Levine’s promises.  

REICHENTHAL, 78, of Homestead, Florida, pled guilty to one count of conspiracy to commit wire fraud.  This charge carries a maximum term of twenty years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

REICHENTHAL will be sentenced at a later date by the Honorable Lewis A. Kaplan.         

Extradition proceedings against Levine are pending.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation.

[1] As the introductory phrase signifies, as to Levine, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation. 

MAYOR ADAMS’ STATEMENT FOLLOWING LAST NIGHT’S STABBING IN CHINATOWN

 

New York City Mayor Eric Adams today released the following statement in response to the stabbing of a woman in Chinatown:

 

“I and New Yorkers across the city mourn for the innocent woman murdered in her home last night in Chinatown and stand with our Asian brothers and sisters today. 

“The NYPD is investigating this horrific incident, and I thank them for apprehending the suspect. While the suspect who committed this heinous act is now in custody, the conditions that created him remain. The mission of this administration is clear: We won’t let this violence go unchecked.”

Governor Hochul Announces Subway Ridership Tops 3 Million Mark for Three Consecutive Days for First Time Since December 17

 

Weekly Ridership 55 Percent of Pre-Pandemic Levels

54 Percent Increase in Ridership since Omicron Low on December 27, 2021

 Governor Kathy Hochul today announced that New York City Subway ridership surpassed the 3 million mark for three consecutive days this week.  

According to the Metropolitan Transportation Authority (MTA), the subway system carried 3,015,755 customers on Tuesday, 3,087,731 customers on Wednesday, and 3,108,216 customers on Thursday. This marks the first time that subways have carried over 3 million riders for three days in a row since the Omicron wave hit New York City on Dec. 17, 2021. Weekly subway ridership has now reached 55 percent of pre pandemic levels. The latest ridership figure is a 54 percent increase since it hit a weekday Omicron low of 2,011,675 on Dec. 27, 2021. Since then, mask compliance has improved to 95 percent on subways and ridership has trended back up.     

"Strong public transit ridership is yet another sign that New York's comeback is only growing stronger," Governor Hochul said. "The subway is the lifeblood of the city, servicing millions of riders a day and keeping New York moving as our economy rebounds from the pandemic. Strong and dynamic transportation infrastructure is key to our recovery, and we are working hard to maintain our progress in returning to pre-pandemic levels."

To further encourage ridership, the MTA announced a series of new fare pilot programs that makes fares more affordable, more flexible, and fairer, including a cap on weekly fares through the Authority's contactless payment system, OMNY, with the "Lucky 13" feature. Starting with the 13th ride of each week every additional ride on subways or buses is free for the rest of that week.

MTA Chair and CEO Janno Lieber said, "We've come flying back from the Omicron surge as New Yorkers are ready to ride the subway to their destination. New Yorkers are coming out of Omicron, they're coming back to mass transit, and now they are going to take advantage of some really attractive new fare promotions."     

New York City Transit Interim President Craig Cipriano said, "New York City Transit has been here to move folks across the city getting our customers to every corner of the five boroughs. New Yorkers returning to the system can trust the hardworking women and men of the MTA to continue to be here to get them to work, school, or wherever they need to go."  

MTA Chief Customer Officer Sarah Meyer said, "It's an exciting time in New York as the transit system is showing signs of renewed strength with these growing ridership numbers. We are committed to continuing to improve service and on-time performance, while encouraging riders to tap their phones or payment cards for a seamless journey to their destination."     

Final Reminder Bx Progressives Invites You to a Bronx Block Power 2022 Informational UPDATE SEE BELOW

 

THIS MEETING WAS A MEETING TO GO AFTER THE BRONX DEMOCRATIC PARTY, AND THIS REPORTER WASS KICKED OUT OF THE ROOM AND NOT LET BACK IN, WHEN MICHAEL BELTZER BEGAN TO SPEAK.

Hello Bronx Progressives! Hope you're all having an awesome February. Inviting you all to our Bronx Block Power Informational on County Committee. 

Bronx Block Power is a County Committee organizing coalition that aims to support as many people to run independently in their own communities. 

Bronx Block Power foresees electing hundreds of individuals who will serve as servant leaders throughout The Bronx.

We're building a space to identify voters aligned with grassroots values while learning how to run events, getting permits for community events, know your rights sessions, and the process of collecting signatures to submit petitions to the Board of Elections to get on the ballot for county committee.

Register using this link so you can join us on Sunday, February 13th at 3:00pm. More information on how to join below: Register for our Zoom panel at: bit.ly/