Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioSen. Joseph Addabbo has introduced a new bill that proposes legalizing online casinos in New York. The bill would allow the state’s commercial and tribal casinos, as well as licensed sportsbooks, to expand into online gaming, offering online slots, poker, table games, and live dealer games.
Senate Bill 2614 and its House companion A5922 state that no new betting licenses would be issued if they are passed. This means only those already offering gambling services in the state would be allowed to launch online casino platforms.
The state would charge $2 million for each igaming license and a $10 million fee for independent platform providers using their own brand. Licenses would be valid for up to 10 years, and the New York State Gaming Commission would have to approve or deny applications within 90 days.
The process of obtaining a license should be more straightforward than the lengthy procedure to grant three additional casino licenses. The companies in line to open/expand properties will all be eligible to launch online platforms.
Online Casinos Could Bring Significant Tax Revenue
Other key details include a 30.5% tax rate, which is considerably lower than the state’s 51% tax on sports betting but higher than the rates in other states with online casinos. There is no additional tax on online slots, unlike those in Delaware, Pennsylvania, and Rhode Island, which face heavier burdens.
Tax proceeds will go to the State Lottery Fund for education, with $11 million per year earmarked for problem gambling education and treatment. A minimum of $25 million per year will be allocated to worker training, responsible gaming education, and health programs.
There could be considerable funds remaining, with estimates suggesting operators could generate around $2.5 billion in revenue in their first year. This could rise to as much as $4.5 billion after a few years.
New York collects the highest amount of tax revenue from sports betting at its premium rate of 51%. Last year, the state exceeded $1 billion in tax revenue for the first time, and this figure is expected to increase again this year. The state reported record revenue this NFL season, with residents wagering over $2 billion a month on sports.
If passed, New York would become the eighth state in the US to legalize online casinos, joining neighboring states such as New Jersey, Connecticut, and Pennsylvania.
Addabbo: Bill Represents a ‘Necessary Step’
Addabbo has campaigned to legalize online casinos in New York as a way to regulate an already existing industry and generate state revenue. His previous efforts have failed to make significant progress, but he feels this time the state may be ready to seriously discuss legalization.
With the downstate casino license process concluded and the state having passed legislation banning sweepstakes casinos, Addabbo believes now is the right time to review iGaming legislation.
He stated, “Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernization of New York’s online gaming landscape.”
Addabbo sponsored the bill banning sweepstakes, but believes a legal framework is needed to protect users from unregulated gambling platforms. He added, “If online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections.”
The consumer protections included in the online casino bill include capping credit card deposits at $2,500, self-exclusion tools, setting daily, weekly, and monthly deposit limits, as well as prominently displaying problem gambling resources on the platforms.
The bill has been referred to the Senate Racing, Gaming, and Wagering Committee, which Addabbo chairs. Assemblywoman Carrie Woerner sponsors the House version, which will be discussed in the Assembly Racing and Wagering Committee. If passed through the various committees and signed by Gov. Kathy Hochul, the bill would be enacted immediately.
