New York State has once again introduced legislation that looks to legalise online casinos in the Empire State.
Senator Joseph Addabbo put forward S8185 for discussion on January 11, and as of writing, it resides in the Senate’s Racing, Gaming and Wagering Committee. The 2024 bill is very similar to the 2023 edition – S4856 – with a few slight changes.
Like last year’s bill, online casino licences will be available for the four downstate casinos and three forthcoming upstate casinos, VLT parlours MGM Empire City Casino and Resorts World NYC, New York tribes and online sports betting operators.
In addition, three more licences will be available for competitive bids for applicants who have a focus on DEI, whereas last year’s bill stated that three additional licences would be available for applicants with at least five per cent minority ownership.
The bill states: “abide by an affirmative action program of equal opportunity, approved by the commission, whereby the applicant establishes specific goals for the utilisation of minorities, women and veterans in full-time, permanent jobs at such interactive gaming license’s place of operation.”
Similar to 2023, igaming within the Empire State would be taxed at 30.5 per cent under S8185, with licence fees of $2m for operators wishing to operate under their own brand, and $10m for those who wish to use a different brand. Each type of licence would be valid for 10 years.
The bill will also designate 0.025 per cent of tax revenue generated each fiscal year to fund employee training and responsible gaming trading, equating to at least $25m a year. Operators must also notify patrons once they have deposited a combined $2,500 on an app.
Online casino servers will need to be located on property at a casino, but live dealer studios can be within state lines with licensees being part of a union labour agreement.
The bill estimates that New York would receive approximately $1bn annually in state tax revenue, as well as $150m in one-time licence fees from casinos, operators and independent contractors looking to conduct online casino operations.
Addabbo’s justification for this bill is the state tax revenue generated by igaming operations in neighbouring states of New Jersey and Pennsylvania, as well as New York’s strong position in the online sports betting industry.
