As discussions about online gambling intensify in New York, the possibility of legalizing online casinos by 2025 sparks hope. With the ongoing legislative efforts of State Senator Joseph Addabbo, the landscape of online gambling in New York may soon change.
Pushing for Legalization
Senator Joseph Addabbo has been a strong advocate for the legalization of online casinos in New York. Since the legalization of online gambling, he has introduced several bills aiming to establish a regulated online gambling market in the state. He believes that legalizing this market could significantly improve the state's financial situation.
Earlier this year, Addabbo introduced the SB S2614 bill, which aims to legalize and regulate iGaming activities. This is the third consecutive year he has proposed a bill to legalize online casino gaming in New York. Some voters support the legalization of online casinos, but the bill needs approval from both the Senate and the House of Representatives before it can be submitted to voters. If approved, the proposed legislation would create one of the most lucrative iGaming markets in the country, in the most populous state with nearly 20 million residents.
All nine licensed sports betting companies in New York would automatically enter this market. The bill would also issue iGaming licenses to four commercial casinos in northern New York and three upcoming casinos in the south, as well as numerous tribal casinos throughout the state. This would open the door to over 20 iGaming platforms in New York.
Reducing Online Gaming Tax Rates
The proposed tax rate is 33.5% of total gaming revenue, significantly lower than the current 51% tax rate on mobile sports betting in the state. Despite the lower tax rate, the revenue could be substantial, as online slots and table games typically have higher profit margins than sports betting. Considering that the state's sports betting companies accepted $2.48 billion in bets in January alone, reducing the tax rate is unlikely to affect the revenue from online casino games. Given the potential profitability, nearly all major US iGaming operators are expected to show interest in entering this market.
Multi-State Agreements Overlooked
The 2025 proposal does not mention provisions for New York's participation in interstate agreements, which is noteworthy given Senator Addabbo's history. He had included such clauses in earlier bills and emphasized the importance of interstate agreements in various media interviews.
Other states like Maryland, Indiana, Wyoming, and Massachusetts have also introduced iGaming bills this year, including clauses for joining such agreements. The absence of interstate agreement language in New York's bill is surprising and raises questions about the strategic decisions behind the legislative process.
Economic Benefits and Obstacles
The potential economic benefits of legalizing online gambling in New York are undeniable. Addabbo believes that iGaming revenue could provide critical income growth for the state, which could be used to offset budget deficits and support public services. However, despite numerous attempts over the past decade and nearly a dozen bills proposed, legalization has not yet succeeded.
The outcome of SB 2614 is still uncertain. Some legislators, recognizing the lucrative profits from legalized sports betting, may support the bill. However, others advocate for a period of assessment to evaluate the long-term impact of this expansion on the existing gambling landscape. Concerns are that as online gambling platforms make casino games more accessible to a broader audience, gambling addiction may increase.
Resistance also comes from powerful interest groups, particularly the alliance of leaders in the New York gambling and entertainment industry, NAAIG. The organization believes that introducing online gambling could affect the revenue of physical casinos and jeopardize jobs within the industry.
Public Sentiment
Public opinion on online gambling is mixed, with a significant portion of people still skeptical about the expansion of iGaming. This sentiment is reflected on the political stage, where the balance of support or opposition to legalization could tip the scales. Addabbo's initiative is a test of how much effort New York is willing to put into the economic advantages of online casinos.
Will New York Legalize Online Casinos?
Whether online casinos will become a reality in New York this year remains uncertain. New York continues to strive to expand iGaming, and potential policy shifts could greatly affect the future of online gambling in the state. However, even if the iGaming bill makes legislative progress, it may still face strong opposition from industry stakeholders.
Without explicit support from the governor or other industry leaders, the path to legalizing iGaming in New York remains unclear. The decisions made now will determine whether New York adapts to the constantly changing landscape of digital gambling in the US or falls behind.
