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New York joins the rank of six states this month to introduce iGaming legislation, with Senator Joseph Addabbo Jr. once again seeking to expand the state’s gambling market to include online casino, poker, and lottery.
Senator Joseph Addabbo Jr. (D-Howard Beach) has been a leading advocate for digital gaming in the Empire State. His recent proposal, SB 2614, which has been referred to the Senate Committee on Racing, Gaming, and Wagering, will mark his third attempt in as many years.
Similar to last year’s bill, S4856, the new proposal is looking to amend the state’s Racing, Pari-Mutuel Wagering, and Breeding Law by introducing Article 15. This would legalize iGaming and impose a 30.5% tax rate on operators’ gross gaming revenue.
What does the Bill say?
A central feature of the bill is the proposal for the New York State Gaming Commission (NYGC) to oversee the regulation of the iGaming market and taxation, as well as to issue licenses. Casinos, Indian tribes, video lottery terminal (VLT) facilities, and online sports betting operators would all be eligible to apply for a license. However, operators who have formerly offered unlicensed games without authorization from the NYGC would be excluded.
Additionally, independent contractors seeking a license would face a one-time fee of $10 million, significantly higher than the $2 million for other eligible bodies. Operators would also be allowed to use a single skin, and the servers accepting wagers must be located in a licensed facility.
The bill also mandates compliance with responsible gambling measures, including self-exclusion tools, age verification, and funding for responsible gambling initiatives. There would also be a $2,500 annual limit on credit card funding, and should a player exceed this, they would be suspended from wagering until they are properly informed about problem gambling and acknowledge their understanding of the risks involved.
Addabbo to Close Sweepstakes ‘Loophole’
In addition to championing the push for online gaming in the state, Addabbo has also been vocal about the need to shut down sweepstakes gaming in the state. In fact, the Senator, speaking in a recent press release, acknowledged that this was one of the top issues on his mind during this legislative session.
“To close this loophole, I will work to ban or incorporate Sweepstakes Casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for iGaming as a safe, effective alternative for online casino enthusiasts. By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents,” he explained.
“Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins. I encourage my colleagues and the Governor to take action against unregulated sweepstakes casinos, while reconsidering the benefits of allowing legal iGaming operators to provide sanctioned services in a popular and ever-growing industry.”
Will New York Cross the Line this Year?
In the past four years, almost six iGaming-related bills have been introduced in the Empire State, but all have failed to gain significant traction. Senator Addabbo is determined to make it happen this year, though the odds seem as uncertain as ever.
Supporters of the bill have cited the success of mobile sports betting, which has proven lucrative since its launch in 2022. Lawmakers have also highlighted the potential economic benefits, as evidenced by neighboring states like New Jersey, Connecticut, and Pennsylvania. However, opposition persists from influential groups concerned about the impact on land-based casinos and the risk of increased gambling addiction.
If the bill were passed, New York, with a population of 20 million, would become the largest market for iGaming in the United States, surpassing Pennsylvania and Michigan, with 13 million and 10 million residents, respectively. It would also take at least 18 months before New Yorkers could play on these platforms, with BetRivers, PokerStars, and BetMGM among the leading operators expected to apply for licenses.
Source: Next.io
