New York Lawmakers Propose iGaming and iLottery Legalization to Tackle Budget Deficit
Date: 2023-12-07 Author: Dima Zakharov Categories: EVENTS
Expanding Revenue Streams to Counter Budget Deficit
Facing a projected budget deficit of $4.3 billion in 2024 and a staggering $8 billion in 2025, State Senator Joseph Addabbo and Assemblyman J. Gary Pretlow of New York are championing the legalization of iGaming and iLottery. They argue that this strategic move could secure over $1 billion in new tax revenue annually, providing a crucial boost to the state's finances.
Optimistic Outlook on Additional Platforms
In an opinion piece for City & State New York, both lawmakers draw parallels to the success of mobile sports betting. They express optimism that the introduction of iGaming and iLottery could generate substantial funds, specifically benefiting education aid and sports programs for underserved children.
Legislation for a Safe and Regulated Market
As chairs of their respective gaming committees, Addabbo and Pretlow are actively pursuing legislation to authorize iGaming and iLottery, emphasizing the need for a safe and regulated market. The proposed bill mirrors the successful framework implemented for mobile sports betting, with an estimated annual revenue boost of $1 billion.
Neighboring States' Success Stories
The lawmakers highlight neighboring states, such as New Jersey, Connecticut, and Pennsylvania, where iGaming has been embraced. These states report increased tax revenue without negatively impacting traditional businesses like casinos and convenience stores that sell lottery tickets.
Consumer Protection at the Forefront
Addabbo and Pretlow stress that legalization not only brings financial benefits but also prioritizes consumer protection. They argue that regulating iGaming and iLottery prevents underage access and addresses problem gaming, ensuring a responsible and secure environment.
Economic Growth Opportunity
With the legislative session approaching, the lawmakers are hopeful that their efforts will lead to the legalization of iGaming and iLottery. They urge New York to seize this economic growth opportunity, emphasizing the potential benefits in the face of an impending budget deficit.
Temporary Extension for Seneca Nation
In other gambling news, Governor Kathy Hochul has approved a temporary extension of the gambling compact with the Seneca Nation until March 31, 2024. This extension allows the tribe to continue operating its three venues in the state, contributing approximately $100 million annually to the state's revenue.
Challenges in Negotiations
While the extension is approved, negotiations with the Seneca Nation remain tense. The tribe seeks a reduced tax rate amid changing market dynamics and increased competition from new commercial casinos.
