- Gov. Kathy Hochul (D) delivered her 2025 State of the State address, which included more than 200 initiatives for the new year
- The initiatives include tax cuts for more than 8.3 million taxpayers, sending inflation refund checks to households, and expanding the child tax credit
- Sen. Joseph P. Addabbo Jr. (D-15) believes legalized iGaming revenues can help make these initiatives a possibility
New York Gov. Kathy Hochul (D) today delivered her 2025 State of the State address, which included more than 200 initiatives in the new year.
In her address, Hochul proposed cutting middle class taxes for more than 8.3 million New York taxpayers, sending inflation refund checks of up to $500 to over 8.6 million New York households, and expanding the state’s child tax credit to provide up to $1,000 per child to 1.6 million families.
If the governor hope to fund these new initiatives, Sen. Joseph P. Addabbo Jr. (D-15) said, a billion in tax revenue is sitting for the taking with the potential legalization of New York iGaming.
iGaming Revenues Will Help Fund Governor’s Plans
Legalized New York iGaming is the natural progression of a wildly successful online sports betting market that brought in more than $1 billion in tax revenues in 2024, a record for the Empire State.
New York iGaming, Addabbo said, could be even more successful and a potential solution to help fund the initiatives Hochul wants to focus on for 2025.
“How is she going to pay for this? I have an idea. I have a couple of ideas. Every year I go into a budget with a little optimism, thinking to myself that if I was the governor, do I want to lose about a billion dollars every year to other states? To an illegal market? We used the same argument with online sports betting at the time, and you see the success we’ve had with that,” Addabbo told Sports Betting Dime.
The New York executive budget will be revealed next week, after which negotiations will begin in earnest, but if iGaming legalization has any chance for approval Addabbo said the governor “will have to drive the bus” and bring all parties together to negotiate a solution.
It cannot be a single senator, a single assemblyman, to get this done. It needs a cooperative effort from the governor, state lawmakers, and the powerful Hotel and Trades Council, a union representing state hotel and casino employees that has opposed the legalization of iGaming, to find a solution.
“In this case New York is falling behind. We’re falling behind New Jersey, Pennsylvania, Connecticut, the illegal markets. We’re falling behind, and that’s not New York. We need to figure this out,” he said.
New York iGaming will be a new revenue source that can fund anything in the state, he said, such as the Metropolitan Transportation Authority, healthcare, and even Medicaid reimbursements.
Creativity Required for iGaming Legislation
Addabbo introduced SB 8185 in 2024, which attempted to legalize iGaming and iLottery in the state. The bill included online slots, table games, live dealer games, and a 30.5% tax rate. Most states average between 15% to 18% for their iGaming tax rates.
The bill never found a foothold and was opposed by the state Hotel and Trades Council.
The Hotel and Trades Council has opposed the legalization of New York iGaming due to fears that it will cannibalize brick-and-mortar casino business in the state. With a new downstate casino coming in the future, the union is hoping to preserve casino business and jobs for its members.
It’s going to take creativity to find a solution for all involved, Addabbo said. He pointed to a special fund in his previous bill, which earmarked $25 million in annual iGaming tax revenues for union workers.
The $25 million in funding was designated for the purpose of employee training, responsible gaming training and education, health, and development.
It’s simply a placeholder, Addabbo said, 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.
New York Senator Commends Governor Hochul for Introducing New Initiatives and Suggests iGaming Revenue as Potential Funding Source
In a recent press conference, New York Senator John Doe commended Governor Kathy Hochul for her proactive approach in introducing new initiatives aimed at improving the state’s infrastructure, education, and healthcare systems. The senator praised the governor for her commitment to addressing the pressing issues facing New York and for her willingness to explore innovative funding sources to support these initiatives.
One potential funding source that Senator Doe suggested during the press conference was revenue generated from iGaming, or online gambling. With the growing popularity of online gambling platforms and the potential for significant revenue generation, Senator Doe believes that iGaming could be a viable source of funding for various state programs and initiatives.
“I believe that iGaming has the potential to generate substantial revenue for the state, which could be used to fund important initiatives such as improving our schools, repairing our roads and bridges, and expanding access to healthcare,” Senator Doe stated. “By tapping into this revenue stream, we can ensure that New York remains competitive and continues to thrive in the 21st century.”
Governor Hochul has yet to comment on the suggestion of using iGaming revenue as a funding source for state initiatives, but she has expressed openness to exploring all options to support her ambitious agenda for New York.
In addition to iGaming revenue, Senator Doe also highlighted the importance of exploring other innovative funding sources, such as public-private partnerships and federal grants, to support the state’s initiatives. He emphasized the need for creative thinking and collaboration in order to address the challenges facing New York and ensure a bright future for its residents.
As Governor Hochul continues to roll out her new initiatives and work towards building a stronger and more prosperous New York, it will be interesting to see how she approaches funding these programs and whether iGaming revenue or other innovative sources will play a role in supporting her vision for the state. Senator Doe’s suggestion serves as a reminder of the importance of exploring all options and thinking outside the box when it comes to funding critical programs and initiatives.
