- Sen. Joseph P. Addabbo Jr. (D-15) has officially introduced an iGaming bill
- The legislation also legalizes iLottery
- Casinos, video lottery terminal facilities, state tribes, and online sports betting operators eligible for licensure
It’s official, as a New York iGaming bill is now on the table in the Empire State.
Joseph P. Addabbo Jr. (D-15) introduced bill SB 2614 to officially legalize iGaming in the state. If approved, casinos, video lottery terminal facilities, online sports betting operators, and New York tribes will be eligible to offer iGaming.
Addabbo Jr. last week told Sports Betting Dime that iGaming tax revenues will be a perfect funding source for the bevy of new initiatives Gov. Kathy Hochul (D) hopes to implement in 2025.
New York iGaming Bill Details
Addabbo’s legislation will officially tax iGaming at a rate of 30.5% of a license holders gross gaming revenue. Operators will not be able to deduct any promos or bonus bets from their revenue totals.
The bill was referred to the senate committee on racing, gaming, and wagering.
License fees will be set at $2 million for each casino, video lottery terminal facility, or operator authorized to conduct iGaming. Any approved independent contractor looking to host an operator’s iGaming platform and display its brand will be required to pay a $10 million license fee.
The bill will allow licensed iGaming operators to offer table games, slot games, poker, and live-dealer games. Any live-dealer game will be required to take place in a live gaming studio that is physically located in New York.
Addabbo has publicly stated that New York iGaming could bring in $1 billion annually in tax revenues, which would be similar to what the state bring in for online sports betting. Online sports betting — which is taxed at a rate of 51% — resulted in $1,042,442,978 in tax revenues in 2024.
Despite iGaming being taxed at a lower rate than sports betting, operators tend to bring in more in terms of revenue when compared with online sports betting.
Additionally, the legislation effectively closes the state’s sweepstakes gap. An unlicensed entity offering games or contests in the state — such as sweepstakes gaming — within the previous three years will be ineligible to receive an iGaming license.
Large Hurdles to Climb
This is the third year in a row Addabbo has introduced an iGaming bill. Despite his enthusiasm for the new form of gaming, iGaming has a fairly large opponent in the Hotel and Trades Council.
The union has opposed the legalization of New York iGaming for the last several years, mainly due to fears that it will cannibalize brick-and-mortar casino business in the state. With a new downstate casino coming sometime in the future, the union is hoping to preserve casino business and jobs for its members.
To appease the union, the bill includes a fund to earmark $25 million in each fiscal year for the purpose of employee training, responsible gaming training and education, healthy, and development. Addabbo told Sports Betting Dime it’s simply a placeholder to address iGaming cannibalization concerns from the union. He’s open to negotiations to move forward and find a solution to legalize an iGaming bill.
“We acknowledge the issue of possible cannibalization, which we might address with this $25 million fund. But that’s a placeholder. You want to rearrange that language to cap levels where there could be no layoffs when we legalize iGaming? I don’t know, but we can be very creative. There’s a way to go forward, but there just can’t be a single path,” he said.
In recent years, the iGaming industry has experienced significant growth and popularity, with more and more states legalizing online gambling. New York, a state known for its vibrant gaming industry, is now considering a proposal for iGaming legislation that could potentially revolutionize the way residents and visitors alike engage with online gambling.
The proposed legislation, set to be introduced in 2025, aims to regulate and legalize online gambling in New York, allowing residents to access a wide range of casino games and sports betting options from the comfort of their own homes. This move comes as a response to the growing demand for online gambling options in the state, as well as the potential economic benefits that a regulated iGaming industry could bring.
One of the key aspects of the proposed legislation is the establishment of a licensing system for online gambling operators, ensuring that only reputable and trustworthy companies are able to offer their services to New York residents. This will help to protect consumers from fraudulent or unscrupulous operators, while also generating revenue for the state through licensing fees and taxes.
Additionally, the proposed legislation includes measures to promote responsible gambling and protect vulnerable individuals from the potential harms of online gambling. This includes mandatory age verification checks, self-exclusion programs, and resources for those who may be struggling with gambling addiction.
Proponents of the proposed iGaming legislation argue that it will not only provide a safe and regulated environment for online gambling in New York but also create new opportunities for economic growth and job creation. By legalizing and regulating online gambling, the state can capture a portion of the estimated billions of dollars that are currently being spent on unregulated offshore gambling sites.
However, there are also critics of the proposed legislation who raise concerns about the potential social impacts of expanding online gambling in New York. They argue that increased access to online gambling could lead to higher rates of problem gambling and addiction, particularly among vulnerable populations.
Overall, the 2025 proposal for iGaming legislation in New York represents a significant step towards modernizing the state’s gaming industry and providing residents with a safe and regulated online gambling experience. As the debate over the pros and cons of online gambling continues, it will be interesting to see how this proposal evolves and whether it ultimately becomes law in the Empire State.
