New York State Senator Joseph Addabbo has taken another step toward legalizing casinos, online gambling and lotteries by introducing Senate Bill S8185.
The proposal, referred to the New York Senate’s Racing, Gaming and Wagering Committee, marks Addabbo’s latest attempt to bring legal online casinos to the state, following his previous initiative, S4856, which failed to pass in 2023.
What does the New York Bill propose?
SB S8185 addresses crucial aspects related to license eligibility. In addition to the four casinos in the North and three facilities under development in the South of the state, three racetracks can apply for licenses.
New York native-american tribes such as the St. Regis Mohawk Tribe, Seneca Nation of Indians and Oneida Indian Nation of New York are also eligible, requiring a compact amendment.
Three additional licenses will be awarded through a competitive bidding process as applicants commit to affirmative action programs approved by the Commission.
Fees for licenses vary, with a one-time payment of US$2 million and US$10 million for independent contracts providing online gaming platforms.
In addition to online gaming, the bill covers rules for the online lottery, allowing consumers to participate in joint, multi-jurisdictional and out-of-state lotteries via mobile or desktop devices.
The New York State Lottery Division will oversee online ticket sales, with the legislation taking effect immediately upon passage.
Tax and protections for online betting users
The proposal sets the tax at 31.5% of gross revenue from online gaming, with $11 million going to the Commission and the Office of Addiction Services and Support.
Safeguarding procedures, including the option of self-exclusion, are required to protect users. Additionally, legal online gaming will be restricted to players aged 21 and over.
Replicating Sports Betting Success
The bill comes nearly two years after the successful launch of online sports betting in New York. In December 2023, the state achieved a record revenue of $188.3 million.
This surpassed the previous record of 166.3 million dollars set in October 2023.
In November, New York also saw a national record $2.11 billion in online sports betting volume. As a result, it has consolidated its position as the largest betting market in the US.
