A Closer Look at iGaming Legislation in New York
In a move that has significant implications for the future of online gambling in New York, Senator Joseph Addabbo Jr.'s proposed iGaming bill has been notably absent from Governor Kathy Hochul's 2025 budget plans. This bill, which suggests imposing a 30.5% tax on revenues generated from online casino activities, appears to be facing an uphill battle for support during the 2024 legislative session.
Online Sports Betting vs. iGaming
While online sports betting managed to secure a place in the state's 2022 budget, accompanied by a hefty 51% tax rate, iGaming is still striving for legal recognition. The contrast between the two forms of online gambling is stark, highlighting the complexities and challenges within the legislative process. Online sports betting's inclusion set a precedent for the potential benefits of digital gambling; however, iGaming proponents are now tasked with demonstrating similar or greater value for the state's economy.
Economic Implications of iGaming
Supporters of legalizing iGaming argue that it could serve as a boon to New York's coffers, especially useful when addressing budget shortfalls. Without the legalization of iGaming, there is a concern that New York may continue to lose potential revenue to neighboring states that have already embraced the online casino market, or worse, to illegal operations that operate outside the purview of state regulation and taxation.
Industry Skepticism and Potential Conflicts
Despite these arguments, industry lobbyist Steve Brubaker expresses skepticism about the bill's chances of passage. His insights suggest that companies interested in entering the market might face the necessity to divest certain interests before they can apply for a gaming license—a requirement that could arise if the bill were to pass.
Brubaker also points out that last year's legal language surrounding iGaming may have been altered to benefit specific players within the industry. This is not an uncommon occurrence, as lobbyists often play a role in shaping legislation to favor particular companies. Such influence can lead to bills that effectively 'legislate market share,' carving out advantages for certain entities over others.
Furthermore, Brubaker hints at the possibility that Evolution Gaming (Evo), or the casino companies that utilize their services, might have had a hand in modifying legislative language to their advantage. This comment underscores the ongoing tug-of-war between different factions vying for control, particularly over the lucrative live dealer segment of the online gambling market.
The Uncertain Future of iGaming in New York
The road ahead for iGaming in New York remains shrouded in uncertainty. With Governor Hochul's current stance and the legislative hurdles yet to be overcome, the fate of the iGaming bill—and by extension, the broader landscape of online gambling in the state—is in flux. The outcome will undoubtedly have far-reaching consequences for New York's economy and the gaming industry as a whole.
Senator Addabbo and Representative Pretlow have highlighted the critical nature of this juncture, emphasizing the financial loss New York faces by not capitalizing on the iGaming sector. They point to the hundreds of millions of dollars that could be redirected from neighboring states or illegitimate businesses into New York's economy, potentially benefiting public schools and other vital services.
As legislators and stakeholders continue to navigate the complex terrain of iGaming legislation, all eyes will be on any amendments and developments that emerge in the coming months. Whether the bill will gain the momentum needed to become law or falter under opposition and scrutiny remains to be seen. But one thing is clear: the debate over iGaming in New York is more than just a game—it's a high-stakes battle with the power to shape the state's fiscal future.