New York’s iGaming Market Could Be Worth Over $1B, Assert Lobbyists

Article by : Erik Gibbs Jan 15, 2024

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A renewed effort is underway to legalize online casino gaming in New York, with proponents anticipating the potential of generating up to $1 billion in additional tax revenue for the state.

The Bet on NY group, supported by the Sports Betting Alliance, is advocating for the approval of online casinos, asserting that it could not only boost public finances in the Empire State but also invigorate the gaming market.

If successful, the proposed bill promises not only new employment opportunities but also enhanced user protections for residents of New York. State Senator Joseph Addabbo has reintroduced the iGaming legalization proposal.

Legalized online gambling is already a reality in various states, including Connecticut, Pennsylvania, Michigan and West Virginia, with Rhode Island poised to join the list in April.

Senator Addabbo’s bill is advocating for the expansion of online lotteries, such as Mega Millions and Powerball, to cater to New Yorkers, and it encompasses the inclusion of online table games and slots.

Meanwhile, in Georgia, efforts to legalize sports gambling are being rekindled by political representatives, though they are expected to encounter staunch opposition.

The proposed legislation in New York is seen as a potential revenue boon, with the anticipated tax revenues being considered a valuable source of funding for education.

In the year 2022, tax revenues from state sports betting operations amounted to $692.8 million. Considering the looming substantial state budget deficit, projected to reach $4.3 billion this year, further exploration of the online market could potentially fill this financial gap.

Senator Addabbo emphasizes the missed financial opportunities that New York is currently forgoing, particularly in comparison to neighboring states like New Jersey and Pennsylvania, which are reaping the rewards of taxing additional online gambling activities.

Expressing concern over the economic implications, he underscores the need for New York to seize such lucrative opportunities rather than missing out on potential revenue and job creation.

The push for the regulation of online casinos in New York is spurred by the impressive performance of sports betting in the state.

In a recent announcement, the New York State Gaming Commission revealed that sports betting operators in the Empire State achieved a total handle of $2.04 billion in December 2023.

This marks the second-highest handle in the state’s history, closely trailing the record set in November with a handle of $2.1 billion. Notably, New York operators experienced a 9.2% hold in December 2023, an increase from the 7.1% hold reported in the preceding month.