Are you looking for an online casino in the USA? Well, you might have to wait a while unless you are based in New Jersey, Michigan, Pennsylvania, Connecticut, Delaware, or West Virginia.
However, if you are based in New York, you might soon be in luck! Continue reading more below to learn all about the looming possibilities of internet slots and poker in the Empire State.
New York Goes All-In
Senator Joseph Addabbo and other New York lawmakers have once again set their sights on the legalization of online casinos.
With the introduction of a new bill for the 2024 legislative session, SB 8185, the state is on the cusp of joining neighboring states in embracing the digital gambling era, potentially unlocking a lucrative revenue stream and broadening gambling accessibility for New Yorkers and visitors alike.
Senator Addabbo, a long-standing advocate for the gambling sector’s expansion, proposes a framework that could seamlessly integrate online casinos into New York’s existing gambling infrastructure.
The bill not only aims to legalize internet versions of popular casino games like slots and table games but also outlines a comprehensive plan for licensing, taxation, and responsible gambling.
Under SB 8185, a diverse group of entities, including downstate and upcoming upstate casinos, VLT parlors, New York tribes, and online sports betting operators, would be eligible for online casino licenses.
Furthermore, the bill makes room for three additional licenses to be issued via a competitive bidding process, emphasizing a commitment to diversity and inclusion in the gambling sector.
The proposed tax rate for operators stands at 30.5% of gross gaming revenue, mirroring previous proposals. Initial licensing fees are set at $2 million, with a hefty $10 million fee for platform operators seeking to leverage in-state licenses for their brands.
New York’s Sports Betting Success Mirrored
Since New York legalized online betting in 2022, the state has emerged as a powerhouse in the US sports betting market, contributing significantly to the national tax revenue generated from sports wagering.
A recent study highlighted that the state accounted for over 37% of the entire tax revenue from sports betting across the United States. With the industry witnessing remarkable growth, the state’s contributions have become a testament to the potential financial benefits of regulated online gambling.
In the third quarter of 2023 alone, New York’s sports betting tax revenue amounted to $188.5 million, outshining all other states and showcasing the Empire State’s dominant position in the market.
However, keep in mind that this performance is highlighted by a tax rate of 51% on gross gambling revenues from operators, the highest in the country, which significantly contributes to the state’s coffers.
New York State’s online sports betting sector has been on a record-breaking streak recently, with January revenue hitting $211.5 million, marking the second consecutive month of record-setting figures.
This surge in revenue was supported by a substantial betting handle, with players wagering nearly $2 billion in January alone.
Such impressive numbers are bolstered by leading operators like Flutter Entertainment’s FanDuel, which set individual records by generating the highest single-operator online betting revenue of $109.2 million in January.
Despite this booming success in sports betting, online casino gaming, or igaming, remains on the sidelines in New York.
The state’s governor, Kathy Hochul, did not include igaming in the 2025 executive budget, delaying the potential expansion of online gaming in the state.
This decision comes even as Senator Joseph Addabbo pushes for the legalization of online casinos with the introduction of Senate Bill S8185, aiming to build upon the financial success of sports betting by opening up new revenue streams through regulated online casinos.
The contrast between the successful sports betting market and the stalled progress of online casino legalization highlights a significant opportunity for New York.
If the state’s sports betting sector can generate such substantial revenue and tax contributions, the introduction of online casinos could potentially amplify these benefits.
The sports betting model, characterized by strong regulation, high tax rates, and successful operator performance, offers a blueprint for how online casinos could contribute to the state’s economy.
As New York continues to dominate the sports betting landscape, the potential for online casino gaming remains an untapped source of revenue and economic growth.
The legislative journey of Senate Bill S8185 and the broader conversation around igaming legalization is something to keep an eye on, as they could pave the way for a new era of digital gambling in New York, mirroring the success story of sports betting.
The Need for Responsible Gambling
A notable aspect of the online casino bill is its dedication to responsible gambling, mandating that a portion of the tax revenue—no less than $25 million annually—be allocated towards employee training and responsible gaming initiatives.
As the bill makes its way through the legislative process, the anticipation among New Yorkers and the gambling community nationwide is palpable.
The prospect of mobile real-money casino apps offers a glimpse into a future where casino games are more accessible than ever. These platforms promise to deliver the full casino experience, including slots, blackjack, roulette, and potentially live dealer games, directly to players’ smartphones and computers.
While the legalization of online casinos in New York is still pending, the proposed bill represents a significant step forward in the state’s gambling evolution. It underscores a recognition of the economic benefits and consumer demand driving the digital transformation of the gambling industry.
As New Yorkers await the outcome, the potential for online casinos to revolutionize the state’s gambling landscape remains a topic of intense interest and speculation.
With a focus on inclusivity, responsible gambling, and economic growth, SB 8185 sets the stage for a new chapter in New York’s gambling history, promising to bring the thrill of the casino floor to the digital realm.
Stay tuned as we continue to follow the developments of this groundbreaking legislative effort set to redefine gambling in New York and beyond.
