When Bill A3634 moved forward into the State Assembly on February 3rd, New York’s likelihood of legalizing online gaming in 2023 grew significantly. State Senator Joseph Abbaddo recently went on record to talk about the huge opportunity staring the Empire State in the face regarding iGaming legalization.
Matt Blake, Online Gambling’s blackjack ambassador and gaming expert, has the latest for OG News.
New York Losing $4bn Per Year
New York State Senator Joseph Addabbo has long been a vocal advocate for the legalization of online gaming in the state. With recent projections indicating iGaming is likely to generate more revenue than sports betting, the State Senator once again raised his concerns:
“Every year we don’t do iGaming in New York, if you do the math, there’s roughly $4bn lost – if you think of it that way; revenue lost - and lost to another state and to the illegal market.â€
Citing much needed tax revenue and delays to employment opportunities as the key reasons for new legislation, Addabbo added: “I want this to hit in 2023”.
Can iGaming Overtake Sports Betting in NY?
Since its launch in January 2022, mobile sports betting in New York has delivered over $909 million in revenue.
$709.2 million of that figure is collected through sports betting taxes, thanks to the state’s 51 percent tax rate for sports bets.
DraftKings CEO Jason Robbins said that the legalization of iGaming in New York could help soften the blow of the sports betting tax:
“States like New Jersey, Connecticut, and Pennsylvania have authorized iGaming, and results have shown that iGaming’s success can come without cannibalizing existing retail gaming operators or the lottery, and certainly without experiencing the hyperbolic, doomsday scenarios that many opponents recklessly predict.â€
Robins makes a good point, the motivation behind Assembly Bill A3634 is to avoid the Empire State lagging behind neighboring states, especially when the opportunity is so great.
Howard Glaser, Head of Government Affairs at Light and Wonder has projected $2.1bn in annual casino revenue if New York legalized. In its first year of sports betting, the state generated $1.3bn of gross revenue. He said:
“In all of these states, those states have found that while sports betting is a good appetizer, iGaming has proven to be the main course as far as revenue generation is concerned.â€
What Next for New York and Online Casino Legislation?
This Legislative season runs through June and with Bill A3634 moved into the Assembly, Addabbo is gearing up for another run at online casino legislation.
The bill itself states that authorizing online casinos wouldn’t require amending the state constitution.
New York voters approved seven commercial casino licences across the state in 2013. Since then, four casinos, regulated by the state, have opened and currently operate in upstate New York.
Throughout this legislative season, it’s likely the process of selecting the three licensees for downstate New York will dominate proceedings.
Several major operators, including DraftKings, FanDuel and BetMGM have all declared interest in gaining their online casino license in New York.
Online New York sports betting is already live. Find the best sportsbooks and promo codes in NY at Online Gambling.