For the fourth straight session, New York Senator Joe Addabbo is starting with optimism that the state will legalise iCasino gambling this year.
Addabbo reintroduced SB2164, which would legalise online casinos in New York. The Democrat from Queens is the chair of the Senate Racing, Gaming and Wagering Committee. Lawmakers also introduced an Assembly counterpart, A6027.
“For every year we don’t do it, we lose about a billion dollars to New Jersey, Connecticut, Pennsylvania and the illegal market,” Addabbo said. “I start every session optimistic. But it’s a budget process. It can’t just be me. Every state that has it is because the governor wanted to do it or needed to do it, and I think that’s where we’re at.”
Addabbo is hopeful Governor Kathy Hochul will take part in iCasino discussions, as New York will lose billions in federal funding for health care this year, which Addabbo said iCasino revenue can help replace.
He also noted Hochul’s push to protect minors from the sports betting industry. He said that while minors might be avoiding safeguards and taking part in sports betting, they are also likely playing unregulated and illegal casino games online. Attempts were made to prevent that with last year’s sweepstakes ban in New York, but the senator said having a regulated industry would help further.
“I support the governor to help protect minors from mobile sports betting,” Addabbo said. “But why we’re able to protect them is because it’s a regulated environment.
“When I advocate for iGaming, yes, it’s sustainable revenue. But it’s about protecting the New Yorker doing it in an unsafe manner, including minors.”
New York iCasino proposal
S2164 would allow casinos, video lottery terminal facilities, online sports betting operators and tribes to offer iCasino platforms.
The bill would create a 30.5% tax on iCasino revenue, with a $2 million licence fee. The state taxes sports betting at 51%.
Addabbo noted fears persist about cannibalisation of land-based casino revenue. That is a major argument of the National Association Against iGaming. David Rebuck, former director of the New Jersey Division of Gaming Enforcement, has issued rebukes of that argument.
Addabbo pointed to Pennsylvania and New Jersey, where the casinos are still open. He said the cross-promotion provides revenue for the operators, if the licences are tied to the existing land-based casinos.
“I know it’s inevitable, not a question of if, but when,” he said. “You’re not helping New Yorkers. You’re losing money. Yes, it’s hard work. But I’m willing to do the hard work.”
Brandt Iden, Fanatics Betting & Gaming VP of government affairs, echoed Addabbo’s “not if, but when” thought heading into the session. Iden, who led the online casino push in Michigan as a state representative, said it takes time to educate other lawmakers.
“It took five years to pass legislation in Michigan, and many of these states, it’s only been two, three years,” he said. “It takes a long time and that gets overlooked. I’m an optimist and it just takes time and we’ll get there eventually.”
New York iCasino hurdle out of the way?
In previous years, the gambling focus during New York’s legislative session was on downstate casino licences.
Addabbo said that now that the state awarded those licences last year, the discussion can turn to iCasino expansion. He said he hears from the global industry about the potential.
“Now that’s complete, there is an opportunity to look at gaming on a large scale,” he said. “Globally, New York is looked at as a growth market. It’s a big leap, but let’s roll up our sleeves and get the job done.”
Along with iCasino legalisation, Addabbo said he is hopeful to include iLottery offerings. He said technology, and the three neighbouring states with online casinos, are leaving New Yorkers behind.
“I always look at revenue and the protection of others,” Addabbo said. “Technology today is advancing and you can’t stop it. It’s going forward, so let’s work with it.”
Regulating prediction markets
Last year, New York lawmakers banned online sweepstakes casinos. This year, Addabbo noted a similar gambling industry threat in prediction markets, specifically Kalshi.
Rather than ban the prediction market platforms, he said regulation might be the better route. Last year, the New York State Gaming Commission sent a cease-and-desist order to Kalshi for offering sports betting without a licence. In return, Kalshi sued the state, just one of multiple jurisdictions the prediction market platform is fighting in court.
“I’d like to have New York go with Kalshi and others with a regulated mechanism,” Addabbo said.
He said the platforms and their sports betting-like offerings are bleeding into the state’s revenue from sportsbooks.
“We have operators paying 51% – what if someone like Kalshi is not paying anything and it’s creeping into that?” he said. “How do you address it? Regulate it.”