In an op-ed for City & State New York, State Senator Joseph Addabbo and Assemblyman J. Gary Pretlow emphasized the potential of legalizing online gaming (igaming) and ilottery to bolster New York State’s finances.
They pointed out that the revenues generated from these activities could significantly contribute to addressing the state’s looming budget deficit.
New York had already seen remarkable success in mobile sports betting, with the New York State Gaming Commission reporting a record-breaking $166.3 million in revenue for October.
The 2022-23 fiscal year had witnessed online sports betting revenue reaching an impressive $727.4 million.
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Despite these gains, the legislators noted the urgent need to tackle a projected deficit of $4.3 billion in 2024, which could escalate to $8 billion by 2025.
Addabbo and Pretlow believed that legalizing igaming and ilottery represented a crucial step towards overcoming this fiscal challenge.
They disclosed that they were actively working on legislation to authorize these forms of gambling, following a similar framework as the mobile sports betting law.
They expressed optimism that this legislation could become law in the upcoming session.
The legislators also highlighted the experiences of neighboring states like Pennsylvania, New Jersey, and Connecticut, which had legalized igaming.
These states had seen a net increase in tax revenue without detrimental effects on brick-and-mortar businesses.
Addabbo and Pretlow emphasized the importance of retaining these revenues within New York, especially during times of financial distress.
Furthermore, they underscored the potential benefits of igaming legalization, such as protecting underage players and providing support for problem gambling—a level of oversight that the illegal market could never offer.
Addabbo and Pretlow’s advocacy for igaming legalization echoed their earlier efforts to regulate mobile sports betting during the COVID-19 pandemic.
They praised the success of online sports betting revenue as a much-needed economic boost for New York and urged the state to invest in opportunities for long-term economic growth.
Despite concerns about the sustainability of mobile sports betting revenue, particularly due to the high tax rate, industry leaders like DraftKings CEO Jason Robins supported the call for igaming to play a significant role in boosting gaming revenues across the United States.
In the land-based gaming sector, competition was fierce as major players vied for three coveted licenses to construct new casinos in the state. MGM Resorts International recently outlined plans to transform MGM’s Empire City Casino into a full-scale commercial casino, signaling further developments in New York’s gaming landscape.