A bill introduced in New York State could pave the way for the nation's most lucrative online casino market. The proposal faces political hurdles but promises significant revenue for the state.
A significant step towards establishing what could be the nation's most lucrative online casino gambling market was taken this week in New York . While a bill introduced on Tuesday proposes legalizing online casino gaming as early as this year, the path to legalization is far from smooth. The proposal, spearheaded by state Sen. Joseph Addabbo , aims to bring iGaming to the state, facing numerous political challenges encountered in previous legislative sessions.
If passed, the bill would create what projections predict to be the nation's most profitable iGaming market. Each of New York's nine regulated sportsbooks would gain direct market access. This means prominent operators like FanDuel, DraftKings, and BetMGM, currently among the nation's highest-grossing, would be well-positioned to launch in the state. The state's four upstate commercial casinos, its three planned downstate casinos, and over a dozen tribal casinos would also be eligible for iGaming licenses. Overall, New York's potential for over 20 iGaming platforms is substantial.The bill proposes a 33.5% tax on gross gaming revenue, lower than the state's 51% levy on mobile sportsbooks. Considering the higher margins of online slots and table games compared to sportsbooks, the potential for hundreds of millions of dollars in annual revenue (after taxes) across legal operators is significant. Addabbo's proposal is notable for its inclusion of a deposit notification mandate, requiring each licensee to alert customers when their lifetime deposit threshold exceeds $2,500. The legislation would also authorize ticket sales and prohibit unregulated slot and social casinos from seeking licensure for at least three years. 'By addressing the issue of unregulated gambling 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,' Addabbo stated in a release preceding the bill filing.The bill echoes similar iGaming legalization efforts championed by Addabbo, the chair of the Senate's gaming committee, in previous legislative sessions. It faces many of the same hurdles. Online casino gambling enjoys less political favor in many state capitals compared to sports betting. Only seven states have legalized iGaming, while 39 states, plus Washington, D.C. and Puerto Rico, have approved sports betting. Proponents like Addabbo must overcome conservative anti-gambling opposition from the political right and concerns from the left regarding the impact of legalized gambling on economically disadvantaged communities. Labor unions representing some of the state's brick-and-mortar gaming interests have also opposed the bill due to concerns about potential harm to in-person gambling visits and employment opportunities. Gov. Kathy Hochul presents another potential roadblock. The governor's omission of iGaming from her State of the State speech earlier this year suggests it's not a priority in the state's anticipated $200-billion-plus budget. The fate of the state's three downstate casinos could also influence the timeline. State officials are adopting a measured approach to awarding licenses, with a decision not expected until after the 2025 New York legislative session concludes this spring. Lawmakers may choose to delay iGaming legislation until the 2026 session, following the licensing decision.New York's neighboring states, New Jersey and Pennsylvania, are among the four states with fully competitive legal iGaming markets, alongside Michigan and West Virginia. Connecticut, Rhode Island, and Delaware offer legal iGaming but restrict market access to two providers or fewer. The potential for New York's iGaming market to generate substantial revenue is evident. Neighboring states with legal iGaming have already generated significant tax revenue. For example, New Jersey's legal online casino market contributed more than $1 billion in taxes in calendar year 2024. Online casino gaming in New York is likely to surpass this figure, even with the proposed lower tax rate
Igaming Online Casinos New York Gambling Legislation Addabbo Taxes Revenue
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