Senate Bill S8185, introduced on January 11th, has been referred to the New York Senate racing, gaming, and wagering committee, marking another attempt by Senator Addabbo to legalize online casinos in the state.
His previous endeavor in early 2023 with S4856 shared a similar objective but failed to gain approval.
The bill outlines several key provisions, primarily focusing on eligibility for licenses.
Eligible parties include New York’s existing land-based casinos, consisting of four upstate casinos and three downstate facilities currently under development.
Additionally, three racetracks and three New York tribes, namely the St. Regis Mohawk Tribe, Seneca Nation of Indians, and the Oneida Indian Nation of New York, may seek licenses, provided they secure a gaming compact amendment.
Three additional licenses will be issued through a competitive bidding process, with applicants required to commit to an approved affirmative action program.
License holders must pay a one-time fee of $2.0 million, and independent contractors providing an iGaming platform must pay $10.0 million.
The bill mandates that live dealer studios must be located within New York state and that those operating live dealer games must enter into a labor agreement with a union to qualify for an interactive gaming license.
In addition to online casino gaming, the bill also outlines rules for internet lottery, allowing consumers in New York to participate in joint, multi-jurisdictional, and out-of-state lotteries online via mobile devices or desktop computers, overseen by the New York State Division of Lottery.
If the bill becomes law, it will take immediate effect, imposing a 31.5% tax rate on base taxable gross gaming revenue from iGaming, with $11 million of the collected tax allocated to fund gambling addiction treatment through the Commission and the Office of Addiction Services and Supports.
Furthermore, the bill requires operators to implement protective measures against gambling harm, including self-exclusion options, and restricts legal iGaming access to players aged 21 and above.
The introduction of this bill follows the success of New York’s legal internet sports betting market, which launched almost two years earlier, generating record-breaking revenue and handle figures in December 2023.
New York’s regulated sports betting market, established on January 10, 2022, has become the largest in the United States, surpassing previous revenue and handle records.