New York Advances Bill for Legalization of Online Poker and Casino Games on Web
New York's Push for Online Poker Once More
It's back to the drawing board for online poker enthusiasts in New York as Senator Joseph Addabbo Jr. (D-Howard Beach) has put forth SB 2614. This bill, introduced on January 21, aims to legalize online poker and casino games in the state, marking the third consecutive attempt by Addabbo.
The bill is remarkably similar to last year's attempt (S4856), with a proposed 30.5% tax rate on a license holder's gross gaming revenue. If passed, New York-based operators would be allowed to offer a variety of games, including table games, slot games, peer-to-peer poker, and live dealer games.
The bill has been referred to the Senate Committee on Racing, Gaming, and Wagering, chaired by Addabbo himself. However, its chances of success this year remain uncertain due to potential opposition from labor unions, retail casinos, and some lawmakers.
Critics argue that legalizing online gaming could lead to job losses at physical casinos, negatively impact the workforce, and potentially worsen addiction and other social issues. But, proponents of the bill emphasize the potential for generating significant tax revenue and tackling illegal offshore gambling markets.
Missing Multi-State Agreement
Surprisingly, the current bill does not include provisions for New York to join the Multi-State Internet Gaming Agreement (MSIGA). This is surprising, especially given that similar bills introduced in other states this year have provisions for interstate compacts. If passed, multi-state online poker could still become a reality, but New York would likely need to pass separate legislation to authorize participation in an interstate compact, similar to Michigan's approach.
New York is now the sixth state to introduce an online gaming bill this year, joining Maryland, Virginia, Indiana, Wyoming, and Massachusetts. Four of these states, including Virginia, have provisions for joining compacts like the MSIGA.
Note: Since the publication of this article, Hawaii has also introduced an online gaming bill this month.
New York's Past Attempts
New York has been trying to establish a regulated market for online poker and casino games since 2013, with numerous bills introduced over the past decade. Most of these bills proposed a 15% tax rate for online poker and stalled in committee. The exception, S5302, passed the Senate with a decisive 53-5 vote in June 2016 but ultimately failed to advance further.
Senator Addabbo and Assemblyman J. Gary Pretlow have been vocal advocates for online gaming. Together, they've introduced several bills in the past few years, some focused exclusively on online poker and others addressing both online poker and casino games.
Whether 2025 will finally be the year New York succeeds remains uncertain. Even if a bill is passed, it could take at least 18 months before online poker goes live. With nearly 20 million residents, New York would become the largest US jurisdiction to regulate real money online poker, surpassing Pennsylvania (13 million residents) and Michigan (10 million). Major operators like BetMGM, PokerStars, WSOP, and BetRivers would likely enter the market.
- If Senator Joseph Addabbo Jr.'s latest bill SB 2614 is passed, it is likely that New York will join states such as Virginia and Michigan in evaluating technology for legalizing online poker and casinos, potentially becoming the largest US jurisdiction for real money online poker.
- Concerning the recent bill (SB 2614), some critics argue that legalizing online gaming might lead to job losses at physical casinos and worsen addiction, but proponents highlight the potential for generating significant tax revenue and addressing illegal offshore gambling markets.
- Despite the bill's progress, it is likely that opponents such as labor unions, retail casinos, and certain lawmakers will stand against legalizing online gaming; therefore, it is unclear if New York will join the Multi-State Internet Gaming Agreement (MSIGA) through a separate piece of legislation, allowing for multi-state online poker to become a reality.
