New York Senate May Pass Bill to Authorize iGaming in the State

New York Senate May Pass Bill to Authorize iGaming in the State

US Senator Joseph P. Addabbo Jr. presented the US Senate with a new bill that, if passed, would make interactive gaming legal in the state. The bill was introduced in the context of a continuously growing market for sports betting online that has exceeded the $2-billion milestone since the beginning of the year when the activity became legal.

The Bill, Inspired by the Success of iGaming in Nearby States

After his resounding success obtained with the legalization of online sports betting activities in the state, Senator Addabbo wrote Senate Bill 8412 lobbying for interactive gaming online to become legal in the state of New York. The bill was inspired by the irrefutable success recorded by online sports betting activities in the short lifespan since they were declared legal in NY. 

Mobile sports betting that was officially launched on January 8 in NY also reached an impressive handle of $1.9 billion. The senator, who proudly carries on the tradition of his father, Congressman Joseph P. Addabbo, Sr., also relied on the lucrative activities of online casinos in nearby states when working on the bill.

At the moment, seven American states have made casino iGaming legal. The list includes Pennsylvania, Connecticut, and New Jersey, three of New York’s neighbors. In 2021, New Jersey’s tax revenue generated from online casino gaming was around $120 million, while revenues went over the $1 billion mark. The same numbers were recorded in Pennsylvania. Senator Addabbo believes the Empire State market for interactive gaming online could follow suit, provided it would be opened. Online also triggered close to $70 million in tax revenue, turning New York into “the national leader in online casino gaming”, as the bill summarized it.

What Would Happen If the Bill Would Pass?

If it would be approved by the US Senate, the bill would allow online casino operators as well as authorized casinos to provide iGaming services to the people of New York, including table and slot games. The bill sets the iGaming tax at 25% and specifically notes that “promotional gaming credit will not be taxable for the purposes of determining interactive gaming gross revenue.”The tax rate would reach 25%, according to the bill’s details. The rate would be undeniably lower compared to the present 51% tax imposed on online betting activities on sports.

Casinos would need to cover a one-time fee worth $2 million to get started. Independent contractors that would offer wagering platforms and put casino brands on displays would need to pay a one-time fee that is five times higher. The NY state would collect a yearly tax revenue of $475 million along with approximately $150 million in the form of unique license fees from operators, casinos, and independent contractors.

Senator Addabbo is the Chairman of the Senate Committee on Racing, Gaming, and Wagering, as well as a member of the Senate Committees on Aging, Civil Service and Pensions, Children and Families, Education, and Veterans, Homeland Security, and Military Affairs.