Some of New York’s legislators, like, Sen. Joe Addabbo have not given up on legal iGaming in the state. His efforts may have fallen short in 2023, but he recently resubmitted legislation S4856, which would amend the state’s betting law to legalize mobile casinos. He is confident online gaming will help the state fill the projected budget deficit in 2024.
In early 2022, the Empire State officially introduced its online sports betting market, allowing for nine private bookmakers to accept digital wagers. The initiative was a major success, and Mr. Addabbo wants to build on this accomplishment by adding iCasino to the mix. However, his iGaming legalization bill did not succeed last year and has now been resubmitted.
This year, the senator is quite confident about the launch of online casinos, as he wants to use revenue from it to fill the reported US$4.3 million budget deficit in 2024. He believes after that the Empire State will quickly become the national leader in online gambling and he predicts that the vertical could bring in US$475 million in state revenue annually.
The senator’s bill also comes up with a 30.5% tax rate for online casino operators as well as a US$2 million licensing fee for brands promoting under their brand and US$10 million for operators working under different brands than their own. The legislation would allow up to 21 iGaming operators and can also feature land-based casinos in the state.
However, that is not all, as the bill also includes online sports betting companies, tribes in the state, two already operational video lottery terminal parlours, and independent companies with 5% minority ownership. The legislation also considers the health of New York gamblers as it would also require an already established problem gambling program.
In addition to that, the senator has argued that the state is allowing untaxed and unregulated iGaming on its territory which is a cause of concern. He also pointed out that nearby states such as New Jersey, Pennsylvania, and Connecticut already offer legal online casinos, and the Empire State is losing customers and revenue to them. It remains to be seen if his efforts will be successful.
New Yorkers Don’t Mind Legal iGaming
According to a new industry-backed survey, a majority of the public is in favour of legalizing iGaming and Internet lottery sales in the Empire State. A recent poll from the Parkside Group discovered that 51% of the surveyed by the company supported the legalization of iGaming in the state, while another 40% did not like the idea of it.
However, New York should be careful with expanding the sector, as it was previously reported that there has been an uptick in problem gambling-related calls. The New York Council on Problem Gambling has shared a bump in service requests, particularly from younger individuals and their parents, indicating that a worrying trend of gambling addiction could be forming in the youth.