Online Casino Gaming Legislation Reintroduced in New York
With the New Year comes new legislation proposals, and in New York, an effort is being made again to legalize online casino games. Senator Joe Addabbo promised last year that legislation would come in 2024, and he has held to that promise. SB 856 seeks to legalize iGaming with slots and table game options in the Empire state. It’s the same bill the senator introduced last year that failed to gain any ground within the Legislature.
Details of SB 856
The language of the bill lists details regarding casino gaming services, including allowing retail casinos, racinos, and online sports betting providers to apply for licensing. The market would be wide open for all types of operators, with a one-time licensing fee of $2 million. Services would be taxed at 30.5%.
Tax revenues from casino games would go through the Lottery Fund, which helps to support education needs. The bill would also allow the state lottery to sell tickets online. This would open the lottery industry to more sales and increase overall revenues.
Online gaming is already doing well in New York, as sports betting generated over $860 million in tax revenue for 2023. Allowing table games and slots, plus lottery sales online, would boost the overall online earnings drastically to the positive.
Continuing to Support iGaming
Senator Addabbo has long been a supporter of iGaming. In New York, the Senator is the chairman of the Senate Committee on Racing, Gaming, and Wagering. He has tried to expand iGaming into the state for quite some time but has also supported the subject in other states and across the nation.
In December 2023, Addabbo wrote a piece for the City and State New York that showed why the state cannot afford to lose out on the $1 billion projected annual revenues from iGaming. Funding from the federal government is leaving in the post-Covid era, and the state has major budget deficits. Due to deficits, as much as $4.3 billion will be needed in 2024 and as much as $8 billion in 2025.
Addabbo feels the first step to solving budget deficits is to add more iGaming options. If the state can pass the legislation, it would help New York stay in competition with neighboring states such as New Jersey, Pennsylvania, Connecticut, and Delaware, all of which offer online casino gaming services.
NY Senator Joseph P. Addabbo Jr. to Introduce iGaming Bill in 2024
Over the past few years, Senator Joseph P. Addabbo Jr. of New York has tried to introduce iGaming legislation. The senator wants to see NY thrive as much as neighboring states New Jersey and Pennsylvania when it comes to online casino gaming. Despite his efforts, legislation has failed to move forward, but the senator is not giving up.
In a recent interview with Sports Betting Dime, Senator Addabbo Jr. stated that he will introduce a draft for a New York iGaming and iLottery bill this year. The goal is to have the measure introduced and prepped for 2024 legalization. The measure would allow online casino games like slots, blackjack, and online lottery gaming via smartphones or computers.
iGaming Industry is Reliant on Governor Kathy Hochul
Over the coming weeks, the Senator will work on the draft version of the measure. Support will be needed to ensure the measure can move forward in 2024, including getting Governor Kathy Hochul on board.
Addabbo Jr. has pointed out that the revenue from iGaming is much-needed in New York, and the Senator needs the Governor to add the measure to the budget. With the measure added in the budget, the Senator can then work on getting enough support to see the bill pass into law.
This year, Addabbo Jr. tried to see an online gaming bill gain traction, but failed to gain support. S4856 would have legalized online casino games like slots, live dealer, and blackjack. The bill had a high tax rate of over 30%. The Governor chose not to add the bill into the state budget, so it did not move forward.
Losing Out on Millions
New York is currently losing revenue to several neighboring states, including Connecticut, Pennsylvania, and New Jersey, all of which offer iGaming in some form or fashion. Players are crossing into the next-door states to play games online, and New York is missing out on millions in revenues.
According to projections, it seems that online gaming in New York could bring over $1 billion in tax revenues within its first year of operation. Addabbo Jr. stated that he does not typically rely on projections, but it is not unreasonable to believe that New York could reach the billion-dollar mark. In the first year of sports betting services online, the state generated over $800 million in revenues.
The demographic for online casino games is much larger than the sports betting industry, so it is likely that more revenues could be generated. For now, the Senator will continue his push and hopefully be able to finally bring legalized iGaming to the Empire State.
NY Governor Cuomo Says He Will Push For Online Sports Betting
New York Governor Andrew Cuomo is now willing to bet on online sports wagering. After long opposing to the legalization of online sports betting in New York, the governor now says that he will push for it during his upcoming annual address to the state.
Said Cuomo in a statement:
“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in tax revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis.”
A Focal Point of State of the State Address
On Wednesday, Governor Cuomo said that legal online sports betting will be a focal point of his policy proposals when he addresses his constituents and fellow lawmakers during his State of the State address next week.
Added Cuomo:
“At a time when New York faces a historic budget deficit due to the Covid-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets.”
Under the governor’s proposal, mobile sports operator will have to obtain a state-issued license and be tied to a legal gaming facility. He will reportedly ask the New York Gaming Commission to look for proposals or offering legal online sports betting and to ensure that gaming operators include protection against addiction and abuses.
Change of Heart
For much of 202, Cuomo remained opposed to online sports betting and argued that its legalization would need a constitutional amendment. However, with the state facing a looming budget deficit and revenue shortages due to the COVID-19 pandemic, the governor started to warm to the idea of legal online sports betting last month.
During a remote briefing last month, the governor said:
“Are there other ways to get revenue? How about marijuana? How about sports betting?”
Residents in neighboring New Jersey have been able to place wagers using mobile devices and computers since 2018. Today, the Garden State is poised to overtake Nevada as the United States’ largest sports betting market. In November 2020, a total of $872 online bets were placed in New Jersey, generating $30M in taxes. That amount brought the overall 2020 haul of the state from legal online sports betting to $268.8M, with the final numbers expected to be revealed next week.
New York’s Casino Dispute With Seneca Nation Continues
New York’s gambling industry is expanding rapidly. Not long ago, this state approved plans to allow additional casinos and sports betting operations. Unfortunately, New York’s casino dispute with the Seneca Nation is still ongoing.
Lawmakers in New York are in a bitter disagreement with the Seneca over casino tax payments. Today, we’re going to look at what this dispute is all about. We’ll also talk about what state officials are doing to end it.
New York Lawmakers Approve Gambling Expansion Plans
In the past, New York was known as one of the least gambling-friendly states in the US. Lawmakers here showed very little willingness to open any form of gambling aside from tribal casino gaming. Over the past two years, however, state officials have begun to change their stance.
Several bills were presented here to significantly expand the state’s gambling industry. Much of these expansion plans focused on sports betting. With PASPA now gone, every state can set its own laws on the sports gambling industry. Several New York politicians began actively campaigning for sports betting to be made legal.
The state approved a sports betting bill in June. On July 16th, the first legal sports wager in New York was made by Gary Pretlow, a state lawmaker instrumental in getting this industry legalized and regulated. Today, most of the state’s casinos operate land-based sportsbooks. It’s proving to be an extremely lucrative industry, bringing in major revenue earnings through taxes.
In April, New York lawmakers also approved plans to add several new casinos to the upstate area. Several popular casinos already operate in this area, including Resorts World Catskills, which was recently sold to investors in Malaysia. Now, both tribal and commercial casinos are operating here. Online casinos in NY are still unregulated.
Unfortunately, officials are engaged in a major dispute with one of the largest tribal casino operators in the state.
New York’s Casino Dispute with Seneca Nation, Explained
For years, the Seneca Nation has operated a casino in Salamanca. Since first opening, this casino has been required to pay a 25% tax fee to the state on its revenue from the Class II bingo games it was able to offer. In March of 2017, the casino was given a Class III gambling license, granting it the power to offer slots and table games.
The tribe now believes that it’s no longer required to pay the 25% tax fee. Tribal leaders argue that this tax fee was only required from the Class II license. The Tribe believes that there was no provision stating that the revenue sharing would continue.
State officials obviously disagree. An official arbitration panel quickly ruled that the tribe owed $255 in back payments. The Seneca Nation is now working to fight this ruling in the courts. Unfortunately, this dispute is showing no signs of slowing down anytime soon.
It’s taking a toll on the city of Salamanca, which relies on revenue from the casino to operate. Now, state officials are working on ways to help this city out.
New York Sends Salamanca $2.35 Million in Revenue Relief
New York’s casino dispute with the Seneca Tribe has been going on for years. During this time, the tribe has sent no money to Salamanca, where their casino is located. It’s a major disappointment for this city, which uses the money to fund social projects.
Government officials in New York have sent a check to Salamanca for $2.35 million. This city generally receives nearly $5 million in annual revenue from the Seneca casino. Kathy Sarver, City Comptroller of Salamanca, states that the rest of the money would also come from the state if the tribe does not agree to pay.
“If it is settled, then there won’t be any need to advance us any money because we’ll be getting the payments from the casino,” Sarver said. “It’s just an advance. If and when the casino compact issue is settled, we’ll have to pay the state back this money.”
It’s unclear exactly when this fight will end. Both the tribe and state officials believe that they are in the right.
Make sure to stay tuned for more updates to New York’s casino dispute with Seneca Nation over the next few months!
