New York Online Gambling Bill Gets Amendments

New York has been a key player in the legal online sports betting market for over two years now. While the state's online sports betting industry has thrived, lawmakers are exploring opportunities to legalize online gambling. Leading this initiative is Sen. Joseph Addabbo, who recently introduced Senate Bill 8185 (S8185) to authorize online gambling and online lotteries throughout the state.

The initial introduction of S8185 led to its referral to the New York Senate Racing, Gaming, and Wagering Committee on January 11, 2024. However, the bill has seen significant changes this week as it was amended and recommitted to the Committee. The latest version of the bill, now including Article 15, outlines comprehensive plans for the future iGaming sector in New York, emphasizing the need for a competitive market.

In a notable move, S8185 also opens the door for tribal operators to apply for iGaming licenses. However, they must relinquish their exclusive geographic rights on tribal lands. This means that while tribal operators can offer iGaming within their territories, consumers can access services from other licensed operators.

The proposal also addresses the relationship between iGaming and iLottery operators and labor unions. It requires online gambling operators to enter into labor peace agreements with relevant unions as part of their licensing process, promoting fair labor practices.

Regarding taxes, the proposal suggests a 31.5% tax rate on online gambling operators' gross gaming revenue, with the collected funds contributing to the New York lottery fund for education aid. Annually, approximately $11 million will be allocated to address problem gambling issues and support education through collaboration with the New York State Office of Addiction Services and Supports. These amendments could potentially reshape the online gambling landscape in New York, providing new opportunities and safeguards for both operators and consumers.