With revenue rolling in from legal sports betting and a major budget deficit on the horizon, the Empire State will have an opportunity to legalize iGaming in 2024.
New York Sen. Joseph Addabbo Jr. told Poker Industry Pro last week that he plans to re-up his push for online casino gaming, iLottery, and poker with a gambling bill in the legislature this December.
Addabbo, who serves as New York’s chairman of the Committee on Racing, Gaming, and Wagering, could amend S4856, which he tried to get on the budget in 2023, or introduce a new bill.
“What we’re seeing is that mobile sports betting in New York is being perceived as the No. 1 product in the country,” Addabbo said. “We should build upon that. The timing for iGaming is perfect in the sense that we’re showing that New Yorkers have the propensity and the desire to game with a device, as well as going through a brick-and-mortar site, but poker is very popular, so why miss out on that segment? I think it’s something that you have to consider.”
Filling the gap
Addabbo says New York needs to fill a forecasted $9 billion budget gap that could be bridged by a proposed 30.5% tax on online casinos, which state officials believe could produce $1 billion.
That’s another reason he wants to include peer-to-peer poker, and potentially join a multi-jurisdictional compact so players in New York could compete in tournaments and games against players from other states.
"The timing for iGaming is perfect in the sense that we’re showing that New Yorkers have the propensity and the desire to game with a device, as well as going through a brick-and-mortar site, but poker is very popular, so why miss out on that segment?"
- New York Sen. Joseph Addabbo Jr.
Addabbo is also looking to keep gaming money in-state that’s going to neighboring jurisdictions New Jersey, Pennsylvania, and Connecticut that currently offer online casinos.
Adding pieces of legislation from other bills and proposals is on the table, Addabbo said, and he’ll let any minor points that are left out be hashed out during the legislative process.
What about sports betting?
Another area that could be impacted by New York’s push for iGaming is the expansion of sports betting. The current laws allow for nine online sportsbook operators: FanDuel, DraftKings, Caesars, PointsBet, BetMGM, BetRivers, Resorts World Bet, and BallyBet (currently non-operational).
The Empire State could look into adding more operators and possibly lowering the 51% tax rate on sportsbooks.
But if online sports betting’s windy road to legalization is the template for iGaming, it’s not going to be easy. Addabbo was at the forefront of sports betting when PASPA was overturned in 2018. Technically, sports betting was legalized by New York lawmakers before that in 2013. While retail sportsbooks went live in 2019, COVID-19 stalled the movement on making online sports betting legal in 2020, but it was finalized in April 2021. It took until January 2022 to have regulations and operations in effect.
