A bill to legalize online casinos in New York is on ice until at least next year.
The 2022 legislative session ends on June 2, and the NY online casino gaming bill didn’t make it far enough to be signed by the governor. The bill in question (S8412) aimed to legalize online slots and table games in New York state.
Advocates for online gaming — or iGaming — point to the massive tax revenue brought to the state through legalized sports betting.
According to the bill’s justification:
This year, in its first month of operation, New York quickly became the leading mobile sports betting market in the nation, generating nearly $70 million in tax revenue in a single month. Similarly, if authorized, New York would quickly become the national leader in online casino gaming, generating hundreds of millions of dollars in tax revenue annually for the State as it continues to recover from the economic downturn caused by the COVID-19 pandemic.
How Far Did The Bill Advance?
Sen. Joseph Addabbo Jr. (D) introduced S8412 earlier this year. Sen. Addabbo was also instrumental in advocating legalizing sports betting in New York.
It was unanimously passed by the Racing, Gaming, and Wagering Committee, which Addabbo chairs. Three legislators voted “Aye,” and two voted “Aye with reservations.”
Now the bill is sitting with the Senate Finance Committee. With the state budget already finalized for the 2022-2023 fiscal year, Bill S8412 will have to wait until next year’s session for a chance to be added to the 2023-2024 budget.
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How Much Could New York Stand To Gain From Online Casinos?
Online casino gaming tends to be more lucrative than mobile sports betting, which has already brought a windfall of tax revenue to New York.
Online casino gaming is legal in seven states, including New York’s closest neighbors, New Jersey, Pennsylvania, and Connecticut. In each of those states, the revenue from casino gaming has essentially doubled that of mobile sports betting.
As an example, here is an analysis of New Jersey and Pennsylvania from Bonus.com:
- New Jersey: The gross revenue for online casinos was about 1.7 times higher than mobile sports betting
- Pennsylvania: The taxable revenue for online casinos was double that of mobile sportsbooks
Since launching mobile sports betting in January 2022, New York has raked in over $235 million in tax revenue. If New York’s numbers are anything like its neighboring states — and they should be — that could mean over $450 million in additional tax revenue for the state.
“There’s a larger population who would probably take part in iGaming, which is why the revenue from iGaming would be so much greater than, in my opinion, and estimation, the revenue from mobile sports betting,” Sen. Addabbo said.
Sports betting is exploding in popularity across the United States, but online casino games still reach an even larger audience.
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What Does The Future Look Like For Online Casinos In New York?
The bill will have to make it through the finance committee before passing in the Senate and Assembly. From there, it goes to the governor’s desk to sign. All of this will have to happen next year now that the current session is winding down.
Senator Addabbo says he does plan to push the bill again in 2023.
AP Photo/Mike Groll
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