iGaming Bill Could Be Filed in New York Before End of January

Article by : Erik Gibbs Jan 9, 2024

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Despite facing a setback in 2023, the same legislative proposal resurfaces as New York Senator Steve Addabbo reintroduces S4856, seeking to amend the state’s existing online sports betting law.

This move aims to allow mobile casino games, representing a renewed push for iGaming in the Empire State.

Initially introduced in February of the prior year, the bill failed to gain traction in 2023. However, Addabbo is optimistic that the current fiscal landscape, marked by a reported $4.3 million budget deficit in 2024, may sway opinions in favor of the proposed amendments.

The Empire State legislature is responding to the financial challenge, signaling a reluctance to tap into alternative funds or resort to tax hikes to address the deficit.

The refiled bill serves as a renewed effort to align New York’s gaming landscape with evolving industry trends and revenue potential.

Addabbo contends in the proposed legislation that New York is poised to swiftly assume the role of the “preeminent hub for online casino gaming” nationally.

Given the state’s substantial tax revenue of nearly $650 million from sports betting activities in 2023, Addabbo anticipates that the introduction of iGaming would contribute an annual influx of $475 million.

This substantial figure includes an additional $150 million generated through licensing and operating fees.

Addabbo’s proposed legislation outlines a tax framework for online casino operators, setting a rate of 30.5%. Additionally, the bill specifies a $2 million license fee for operators endorsing their brand and a $10 million fee for those endorsing a different brand.

The legislation allows for the inclusion of up to 21 iGaming operators, encompassing various entities such as brick-and-mortar casinos in New York, online sportsbook companies, New York tribes and two existing video lottery terminal parlors, among others.

Furthermore, the bill mandates the establishment of a pre-existing problem gambling program as part of the regulatory requirements.

Addabbo has emphasized the prevalence of untaxed and unregulated illegal online casino gaming in New York, raising concerns about the associated problems with unchecked gambling.

Additionally, he highlights the economic impact of neighboring states like New Jersey, Pennsylvania and Connecticut benefitting from New Yorkers’ spending on online gambling without contributing to New York’s revenue.

In a bid to diversify offerings, Addabbo expressed his interest in introducing peer-to-peer online poker in the state, envisioning a potential multi-jurisdiction agreement with states like New Jersey to enhance revenue streams.

However, the reception of these arguments among New York legislators remains uncertain. Addabbo is anticipated to encounter challenges in gaining support for his proposals.