New York is seeking to expand its gaming industry by introducing a bill that would allow online casino and lottery games in the state. The bill, sponsored by state senator Joseph Addabbo, aims to generate more revenue for the state and prevent the loss of customers to neighboring states or offshore operators.
What Does the Bill Propose?
The bill, known as Senate Bill S8185, was filed on January 11 and referred to the committee for racing, gaming and wagering within the New York Senate. The bill proposes to authorize online casino gaming with interactive slot machines and table games, as well as online lottery games, including joint, multi-jurisdiction and out-of-state games. The bill also allows customers to purchase Powerball and Mega Millions tickets online.
The bill stipulates that the state’s commercial and tribal casinos, racinos, and online sportsbooks are eligible to apply for online casino licenses. Each licensee can operate up to two online casino platforms, which may be independent of the brick-and-mortar brand. The bill also sets aside three additional online casino licenses for entities that have at least 5% minority ownership. The license fee is $2 million per platform, and the tax rate is 31.5% of gross gaming revenue.
The bill also requires that live dealer studios that supply content to online casinos must be located within the state of New York, and that they must enter into a labor agreement with a union. The bill also mandates that the New York State Division of Lottery oversees the online lottery sales and ensures the protection of customers and responsible gaming.
Why Is the Bill Important?
The bill is important for several reasons. First, it aims to address the state’s budget deficit, which is estimated to be $4.3 billion for 2024. The bill’s sponsor, senator Addabbo, argues that online casino and lottery games could generate hundreds of millions of dollars in tax revenue for the state, which could be used to fund public schools and other worthy services.
Second, the bill seeks to capture the market share of online gaming customers who currently gamble on offshore sites or in neighboring states that have legalized online gaming, such as New Jersey, Pennsylvania, and Connecticut. The bill’s sponsor claims that New York is losing out on potential revenue and jobs by allowing this situation to continue.
Third, the bill follows the success of online sports betting in New York, which launched in January 2022 and became the largest market in the US. The bill’s sponsor believes that online casino and lottery games could replicate this success and offer more choices and convenience to customers.
What Are the Challenges and Opportunities?
The bill faces some challenges and opportunities in its path to becoming law. One challenge is the opposition from some anti-gambling groups and lawmakers, who may argue that online gaming could increase the risk of problem gambling, money laundering, and underage gambling. The bill’s sponsor counters that the bill includes measures to prevent and treat gambling addiction, such as funding for the Office of Addiction Services and Supports, and requiring online operators to implement self-exclusion, deposit limits, and identity verification.
Another challenge is the uncertainty of the governor’s position on online gaming. Governor Kathy Hochul, who took office in August 2023 after the resignation of Andrew Cuomo, has not expressed a clear stance on online gaming, although she has supported online sports betting. The bill’s sponsor hopes that the governor will be receptive to the bill and sign it into law if it passes the legislature.
One opportunity for the bill is the support from the gaming industry and the public. The bill’s sponsor claims that he has received positive feedback from the state’s gaming operators, who are eager to offer online casino and lottery games to their customers. The bill’s sponsor also cites a recent poll that showed that 60% of New Yorkers support online gaming legalization.
Another opportunity for the bill is the potential to create a regional online gaming network with other states. The bill’s sponsor suggests that New York could join forces with other states that have legalized online gaming, such as New Jersey, Pennsylvania, and Connecticut, to create a larger and more competitive market. The bill’s sponsor also envisions that New York could participate in interstate online lottery games, such as Powerball and Mega Millions, and offer bigger jackpots and prizes to customers.
What Are the Next Steps?
The next steps for the bill are to go through the committee process and then to the floor of the Senate for a vote. The bill’s sponsor hopes that the bill will pass the Senate by the end of the legislative session in June. The bill will then need to pass the Assembly, where it faces a tougher challenge, as the Assembly has been more reluctant to embrace online gaming in the past. The bill’s sponsor hopes that the Assembly will follow the Senate’s lead and approve the bill. The final step is for the governor to sign the bill into law, or veto it, or let it become law without her signature.
The bill’s sponsor is optimistic that the bill will become law in 2024, and that online casino and lottery games will launch in New York by the end of the year. The bill’s sponsor believes that online gaming is the future of the gaming industry, and that New York should not miss this opportunity to boost its economy and benefit its residents.
