New York’s Latest Online Casino Push. Will It Finally Stick?
New York State Senator Joseph Addabbo isn’t giving up on legalizing online casino gaming. His latest effort, SB 2614, aims to bring regulated online casino games and lottery ticket sales to the Empire State. Addabbo has been at this since 2022, but none of his previous attempts made it past committee discussions. Now, with his fourth proposal, he’s hoping this will finally be the breakthrough.
What Does SB 2614 Propose?
The bill lays out a comprehensive plan for legalizing and regulating online gambling in New York. Key highlights include:
- Licensing and Fees: Existing casinos, video lottery terminal (VLT) facilities, tribal entities, and licensed sportsbook operators could apply for online gaming licenses. Each license comes with a one-time fee of $2 millionfor casinos and VLT facilities. Platform providers would pay a hefty $10 million fee to showcase their brand.
- Tax Rate and Revenue: Operators would face a 30.5% gross gaming revenue tax, among the higher rates nationwide. A portion of this revenue would fund responsible gambling initiatives and education programs.
- Player Safeguards: SB 2614 includes several measures aimed at protecting players. Operators would need to verify the age of users, offer self-exclusion tools, and notify players when their deposits exceed $2,500 annually. Additionally, deposits made via credit cards would be capped at $2,500 per year to curb risky spending.
- Game Offerings: The bill would allow online poker, table games, slots, and lottery ticket sales, but limits operators to one branded platform or “skin.” All servers processing bets would need to be located in licensed facilities within New York.
Challenges on the Road to Legalization
Addabbo’s efforts haven’t been without obstacles. The New York Hotel and Gaming Trades Council (HTC) has been a vocal opponent, citing concerns that online casinos could hurt the state’s brick-and-mortar gaming industry. HTC fears a shift to digital could reduce job opportunities and disrupt the retail gaming economy.
Governor Kathy Hochul, who holds significant sway over the bill’s chances, has shown cautious interest in online gaming but hasn’t prioritized it. In fact, her 2025 budget speech didn’t even mention iGaming. Additionally, New York is still in the process of awarding licenses for downstate casinos, and some believe this needs to happen before tackling online gaming legislation.
Why Now?
New York’s online sports betting market has already been a massive success, generating billions in handle and millions in tax revenue.
Legalizing online casino gaming could push those numbers even higher, making the state one of the most lucrative markets in the country.
However, timing remains crucial. Addabbo’s bill will likely face tough questions about its potential impact on existing casinos and whether the state’s regulatory framework is ready to handle such an expansion.
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