Despite an aggressive push for online casino gambling by several legislators, iGaming and iLottery did not make the NY Senate’s budget which mirrored its absence in Governor Kathy Hochul’s executive budget in January.
This means it is unlikely there will be digital slots, table games and an online lottery for US sportsbooks New York’s.
Wait Until Next Year
At the start of the year, one of New York’s most pro-gambling legislators, State Senator Joe Addabbo, filed SB 8185, an online gaming bill that he had sponsored on two previous occasions. Those efforts failed to materialize iGaming in the Empire State but he was hoping the third time would be a charm. Unfortunately for him and his constituents, that prospect is looking more and more unlikely.
According to Senator Addabbo, the Senate one-house budget did not include any reference to iGaming or iLottery. Moreover, Governor Kathy Hochul has expressed no appetite for a companion gambling option to the state’s wildly popular and lucrative mobile sports betting.
Get Outta Here
“It’s out of the budget but that doesn’t mean we cannot resume that conversation in June or December. It can materialize at any point,” said Addabbo at the iGaming NEXT Summit in downtown Manhattan last week.
Another online casino gambling proponent, Assemblyman Gary Pretlow, was quite candid in his assessment of iGaming’s chances this year or next year when he said, “It’s probably not happening in 2025 unless there is a serious budget shortfall. The powers that be on the second floor [executive offices, including the governor’s office] really aren’t gung-ho on gaming. I don’t believe she’s a great fan of it right now. The last couple of governors weren’t fans of gaming. She (Governor Hochul) needs to be convinced.”
No Dire Emergency
A major budget deficit is the main reason why a governor, who is not necessarily enamored with creating another gambling option, would rethink their position and put it on the table. But what was expected to be something in the neighborhood of a $9 billion deficit has drastically dipped to $4 billion. While deficits are never ideal, there will be no reason to dramatically cut spending on government programs or raise taxes.
That allows Governor Hochul to be, at the very least, ambivalent about iGaming if not downright opposed. But ever the optimist, Addabbo said, “Regardless of the fiscal situation of the state, there are other reasons to do this than just fiscally. There are people in New York gambling online now in an unsafe environment. This bill will give them protections and support.”
Senator Addabbo believes the combination of iGaming and iLottery would bring approximately $1 billion in annual revenue to the state.
The highlights of his bill (SB 8185) are as follows:
- 30.5% tax rate
- Mobile interactive gaming licenses cost $2 million for 10 years for existing licensed New York gaming operators. Independent operators must pay $10 million.
- Potential for up to 31 licenses: four upstate casinos, three future downstate casinos, three Indian tribes, nine VLT racinos, nine online sportsbooks, and three competitive bids with minority participation.
- Allows one skin per licensee.
- Increases jobs in New York with live dealer games that must be conducted in the state.
- $11 million annually earmarked for problem gambling education and treatment.
Nevertheless, it appears as though the senator’s bill will have to be put away for another day. Despite his relentless pursuit of getting an iGaming bill passed, the person occupying the corner office has not been persuaded and may never be.
“I’ll always be ready, but I’m not going to be the only one saying, ‘Hey, we’ve got to do it,’” Addabbo said. “If the governor wants to do this, we do it. If the governor doesn’t want to do it, we don’t do it.”
