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OLG says FY27 budget cuts driven by sports-wagering restructuring will squeeze oversight staff
Summary
OLG told the committee the mayor's FY27 proposal reduces OLG's operating authority by 18.4% ($~50M) largely due to the Sports Wagering Amendment Act of 2024; the agency said that change, lower license-fee estimates and lightly taxed games-of-skill are squeezing its budget and leaving about 10 vacancies that provide necessary flexibility for oversight.
OLG officials told the Committee on Human Services that the mayor's proposed FY27 operating budget would set OLG's budget at $222,201,452 with 96 full-time equivalents, a decline of $49,998,245 (18.4%) from FY26. Executive Director Thomas R. Burnside said much of the change stems from the Sports Wagering Amendment Act of 2024 that moved commercial sports-wagering operations outside OLG's revenue flow. "A lot of it is structural," he said, noting license-fee expectations fell from $2.5 million to $500,000 under the new arrangement.
Burnside warned that the agency is operating with constrained resources, roughly 10 vacancies, and staff performing multiple oversight roles. On potential growth areas such as games of skill or a commercial bingo operator, OLG said it is keeping some vacant posts in reserve "because I'm not going to hire someone when they don't have a job to do." He told the committee he wants legislation that includes funding mechanisms for regulatory oversight so that new gaming lines carry resources to support the regulator. Council members emphasized that OLG should not compromise regulatory rigor to meet transfer targets and asked OLG to provide more precise staffing and cost data as follow-up.
