A bill that would legalize online casino gaming in New York has been introduced in the state senate, but it faces resistance from the casino workers union, which fears job losses and reduced wages.
Online Casino Bill Aims to Boost State Revenue
The bill, sponsored by Sen. Joseph Addabbo, would authorize the New York State Gaming Commission to issue licenses for online casino operators, who would pay a 12% tax on gross gaming revenue. The bill also proposes to increase the number of online sports betting licenses from four to 16, and lower the tax rate from 51% to 12%.
Addabbo, who chairs the Senate Racing, Gaming and Wagering Committee, said the bill would generate more than $1 billion in annual revenue for the state, which faces a budget deficit of $7 billion for fiscal year 2025. He also argued that online casino gaming would create new jobs and opportunities for New Yorkers, and prevent them from gambling on unregulated offshore sites.
Casino Workers Union Opposes Online Casino Expansion
However, the bill has met with opposition from the Culinary Workers Union, which represents about 40,000 casino workers in New York. The union fears that online casino gaming would reduce the demand for in-person gambling, and lead to job losses, lower wages, and diminished benefits for its members.
The union’s president, Ted Pappageorge, said that online casino gaming would cannibalize the revenue of brick-and-mortar casinos, which have already suffered from the COVID-19 pandemic and the competition from neighboring states. He also said that online casino gaming would not create as many jobs as in-person gambling, and that the workers who would be employed by online operators would not have the same protections and standards as union members.
Pappageorge said the union is not opposed to online gambling in principle, but wants to ensure that it does not harm the existing casino industry and its workers. He said the union is willing to negotiate with the lawmakers and the online operators to find a solution that would benefit all parties.
Online Casino Bill Faces Uncertain Future
The online casino bill is still in its early stages, and has not yet been scheduled for a hearing or a vote in the senate. It also needs to find a sponsor in the assembly, where online gambling has historically faced more resistance. Moreover, the bill does not have the support of Gov. Kathy Hochul, who did not include online casino revenue in her executive budget for 2024.
Addabbo said he is optimistic that the bill will gain momentum in the coming months, and that he is open to compromise with the union and the governor. He said he hopes to pass the bill by June, when the legislative session ends, or include it in the budget omnibus bill.
However, some analysts are skeptical that the bill will pass this year, given the complex and contentious nature of online gambling legislation in New York. They say that the bill will likely face more opposition from other stakeholders, such as the tribal casinos, the racetracks, and the anti-gambling groups. They also say that the bill will need more time and research to address the issues of consumer protection, responsible gambling, and social impact.
