Exploring the Future of iGaming in New York
The landscape of online gambling in New York remains on uncertain ground as key legislation, proposed by Senator Joseph Addabbo Jr., was notably absent from Governor Kathy Hochul's 2025 budget plan. The bill in question, which recommends a 30.5% tax rate on online casino revenues, appears to lack the gubernatorial support necessary for inclusion in the legislative agenda for 2024. This omission has sparked discussions about the potential impact on the state's economy and the gaming industry at large.
The Economic Stakes of Legalizing iGaming
With online sports betting having been successfully incorporated into the 2022 budget, carrying a substantial 51% tax rate, proponents of the iGaming bill argue that legalizing online casinos could similarly boost state profits. Advocates assert that such a move would help address budget shortfalls. They also warn that without legalized iGaming, New York stands to lose significant revenue to neighboring states where such activities are legal, or worse, to illegal operations that currently siphon off potential income.
Senator Addabbo and Representative Pretlow have emphasized the fiscal urgency in their joint statement: "At a time of fiscal distress for our state, we cannot continue to allow hundreds of millions of dollars to be funneled into neighboring states or into the pockets of disreputable companies—particularly when those funds could be used to further bolster funding for public schools or other worthy services."
Lobbyists and Legislative Language
The influence of lobbyists on this matter is evident, with Steve Brubaker, an industry lobbyist, expressing skepticism over the bill's chances of passing. Brubaker has pointed out that changes in legal language from the previous year may have been orchestrated to favor certain players within the industry, specifically mentioning Evolution (Evo), a company providing live dealer games for casinos. He stated, "Seems like a very light touch for Evolution. Has me thinking that last year’s L&W language was replaced with more favorable language by Evo or by the casino companies who use them."
Brubaker further noted the common practice of legislation being used to carve out market share for specific entities, saying, "You see bills ‘legislating market share’ all the time. It is the primary reason lobbyists exist." His insights underscore the intricate dance between lawmakers, lobbyists, and private interests that often shapes the outcome of such legislation.
Regulatory Considerations and Industry Dynamics
If the iGaming bill were to pass, it could necessitate that companies divest certain interests before they could apply for a license to operate online casinos legally. This stipulation hints at the complex regulatory environment businesses must navigate and the possible reshuffling of industry dynamics that new laws can provoke.
The debate over the iGaming bill also brings to light broader concerns regarding the regulation and control of live dealer games—a segment of the online gambling market that is becoming increasingly popular. Brubaker commented on the potential for amendments to the bill that could alter its trajectory, stating, "While I do not see this bill passing, it will be interesting to see amendments that may be added to change the direction or focus of what is a battle for control of live dealer."
Looking Ahead
The absence of Senator Addabbo's iGaming bill from Governor Hochul's budget proposal signals a significant setback for advocates of online casino legalization in New York. Despite the potential economic benefits, the complex interplay of political will, industry lobbying, and regulatory challenges presents formidable obstacles.
The future of online gambling in New York hangs in the balance, with the outcome of the iGaming bill set to have profound implications for the state's economy and the gaming industry. As New York navigates this legislative impasse, stakeholders across the spectrum—from lawmakers to industry leaders, and from educators to social service providers—will be watching closely to see how the chips fall.
In summary, while the path forward for iGaming in New York is fraught with uncertainty, the dialogue surrounding the bill underscores the significant economic stakes and the influential role of lobbyists in shaping gaming legislation. As the 2024 legislative session approaches, all eyes will be on Albany to see if online gambling will find its place in the Empire State's regulated market.