The State of iGaming in New York's Legislative Landscape
New York's journey toward the expansion of its online gambling footprint has hit a snag. Senator Joseph Addabbo Jr.'s ambitious iGaming bill, which aims to bring regulated online casino gaming to the Empire State, was notably absent from Governor Kathy Hochul's proposed budget for 2025. This omission casts doubt on the future of digital wagering in New York and raises questions about the state's potential economic gains from such legislation.
The proposed iGaming bill comes with a significant tax rate of 30.5% on online casino revenue. The figure is noteworthy, considering that online sports betting, which was legalized as part of the state's 2022 budget, carries an even steeper 51% tax rate. Despite the financial promise of additional revenue streams, Governor Hochul seems hesitant to endorse the iGaming initiative during the current 2024 legislative session.
Advocates of the bill argue that legalizing iGaming could provide a substantial boost to state profits, potentially alleviating some of New York's budgetary pressures. They warn that without a regulated online casino market, New York risks losing valuable revenue to neighboring states where such activities are legal or to illicit operations that offer no consumer protections or contributions to state coffers.
Lobbyist Insights and Industry Concerns
Steve Brubaker, an industry lobbyist, expresses skepticism about the bill's chances of passing. He highlights the complexities of the legislative process, where special interests often play a significant role. According to Brubaker, lobbyists are instrumental in shaping legislation, sometimes even crafting bills to legislate market share for their clients. This influence can lead to last-minute changes in legal language that disproportionately benefit certain companies over others.
In the case of New York's iGaming bill, there is speculation that previous legal provisions may have been altered to favor specific players within the industry. Brubaker points to Evolution (referred to as "Evo"), a company that provides live dealer games for casinos, suggesting that the language might have been tweaked to accommodate either Evolution itself or the casino operators that utilize its services.
Should the iGaming bill eventually pass, it could necessitate some businesses to divest certain interests before applying for a license to operate within the state. This requirement could shake up the current market structure and force companies to make strategic decisions about their holdings.
The Future of Online Gambling in New York
The stakes are high as the outcome of the iGaming bill looms over New York's economy and its burgeoning gaming industry. The potential windfall from legalized online casinos could fund vital public services, such as education. Senator Addabbo, alongside Representative Pretlow, emphasizes the importance of capturing this revenue for the state, highlighting the hundreds of millions of dollars currently being diverted elsewhere due to the absence of a regulated iGaming market.
Despite the uncertain path ahead for online gambling in New York, the discussion around the iGaming bill continues to heat up. Stakeholders from all sides of the issue are keeping a close eye on any amendments that could alter the bill's trajectory. Brubaker notes that while he does not anticipate the bill's passage in its current form, the legislative process could introduce changes that might shift the focus or direction of what he describes as a "battle for control of live dealer" services.
As the 2024 legislative session progresses, all eyes will be on Albany to see whether lawmakers will take a chance on the economic benefits of iGaming or if the concerns over regulation, taxation, and fair market practices will keep online casinos out of the budget for yet another year. The debate over the iGaming bill is more than just a policy dispute—it's a gamble on New York's fiscal future.