It depends on what taxes you mean. If you happen to realize winnings over the course of a tax year, then you do need to claim them as part of your federal, state, and local income taxes. However, the tax rate mentioned in the New York sports betting law is a 51% levy on the sportsbooks themselves, which they must pay for the privilege of operating in the state. So, don’t worry about that bit of taxation, but don’t blow off paying your taxes on gambling winnings, either.