Revised New York iGaming Bill Filed by State Senator

by | Jan 16, 2024 | casino | 0 comments

Joseph Addabbo, a state senator from New York, has introduced a new version of a bill that, if approved, would legalize online casino gaming and internet lottery in the Empire State.

Senate Bill S8185 was tabled on January 11 and it has been referred to the committee for racing, gaming and wagering within the New York Senate. Senator Joseph Addabbo has previously attempted to have a similar bill approved, Senate Bill S4856 in early 2023, but it failed to pass.

The new bill includes, among other important aspects, information regarding the eligibility for licenses in the state. According to the bill, land-based casinos from New York are eligible to get licenses to operate online casinos. At the moment the state of New York has four upstate casinos and another three downstate that are currently in development.

The three racetracks that operate in the state are also eligible for iGaming licenses. These racetracks are operated by the St. Regis Mohawk Tribe, the Seneca Nation of Indians and the Oneida Indian Nation of New York.

Three More Licenses

The bill also stipulates that three additional online casino licenses will be awarded through a bidding process. Applicants will need to commit to an affirmative action programme and each operator that eventually gets a license will have to pay a one-time fee of 2 million dollars.

The proposed legislation also states that live dealer studios that supply content to casinos licensed in the state must be located within the borders of the state of New York. Moreover, suppliers of live dealer games must enter into a labor agreement with a union. If the bill would pass into law then it would come into effect right away.

Internet Lottery Rules

The bill also proposes rules for internet lottery, allowing customers in New York to play joint, multi-jurisdiction and out-of-state lottery games online. This actual access to the lotteries could be done either through a mobile device or desktop computer. Senate Bill S8185 also states the New York State Division of Lottery would be in charge of overseeing sales of tickets online.

When it comes to taxes on iGaming activities, the bill sets a tax of 31.5% of gross gaming revenue for all license holders. Then the state will give a portion of 11 million dollars of the taxes collected to the Commission and the Office of Addiction Services and Supports in order to fund gambling addiction treatment.

Aiming To Replicate Sports Betting Success

The state of New York is looking for a repeat of the success registered by online sports betting. Almost two years ago the state launched legal internet sports betting, with the regulated market opening on 10 January 2022. Since then it has grown significantly and has become the largest market in the United States.

Moreover, in December 2023 a new state revenue record was set as operators managed to generate 188.3 million dollars in online sports betting revenue. The previous record for the state of New York was set in October 2023, with 166.3 million dollars. In November 2023 the state also reported a new record when it comes to internet sports betting handle: 2.11 billion dollars, an all-time high for the state but also for the entire United States.

Source: “Addabbo files revised New York igaming bill“. iGaming Business. January 12, 2024.

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