New York State Senator Introduces Bill to Legalize Online Casino and Internet Lottery

New York State Senator Joseph Addabbo has taken a significant step toward making online casino gaming and internet lottery play a reality in the Empire State. His new bill, Senate Bill S8185, introduced on January 11th, seeks to pave the way for legal online casinos and internet lottery services in New York. This move comes after his previous attempt with Senate Bill S4856 in early 2023 fell short of success.

The key provisions of SB S8185 include defining eligibility criteria for obtaining licenses. Eligible entities include New York's existing land-based casinos, comprising four upstate casinos and three under-development downstate facilities. Additionally, three racetracks and three Native American tribes in New York—St. Regis Mohawk Tribe, Seneca Nation of Indians, and Oneida Indian Nation—are also eligible but require a gaming compact amendment. 

The bill outlines a competitive bidding process for three additional licenses, with applicants required to commit to an approved affirmative action program. Each licensed casino or operator must pay a one-time fee of $2.0 million, while independent contractors providing igaming platforms will pay $10.0 million. Live dealer studios must be based within New York, and operators must enter into labor agreements with unions for live dealer games.

In addition to online casinos, the bill covers internet lottery rules, allowing New York residents to play joint, multi-jurisdictional, and out-of-state lotteries online via mobile devices or desktop computers. The New York State Division of Lottery will oversee online ticket sales, with the legislation taking immediate effect upon passage.

License holders will be subject to a 31.5% tax on gross gaming revenue from igaming. A portion of the tax revenue ($11 million) will fund gambling addiction treatment. The bill also mandates safeguards, such as self-exclusion options, to protect players from gambling-related harm, limiting legal igaming access to those aged 21 and over.

New York's latest legislative effort in the online gaming sector follows the success of its internet sports betting market, which became the largest in the US. In December 2023, the state set revenue and handle records, solidifying its position as a leader in the growing online gaming industry.