Senator Joseph Addabbo has introduced a new bill in an attempt to legalise online gambling in the state of New York. Bill S4856 proposes to legalise online gambling and allow the introduction of online poker, table games, online slots and live dealer games in New York.
Addabbo was disappointed that the state budget for FY24 didn’t leave much space for introducing legal online gambling and pointed out that people must cross state lines to find a state where iGaming is legal or look for illegal ways to play.
What Benefits Would the Legislation Bring to New York?
As a chairman of the state Senate Committee on Racing, Gaming and Wagering, Senator Addabbo knows the market and the appetite for online gambling and the benefits legalisation would bring to the state.
The bill proposes to set the tax at 35.5% and says: “New York State would receive approximately $475m annually in state tax revenue based upon conservative market estimates.” The tax rate differs from the one suggested by State Representative J. Gary Pretlow earlier this year, who proposed a 15% tax rate on all gross gaming revenue.
In addition, in the first year of operation, New York would receive approximately $150m in one-time licence fees from casinos, operators and independent contractors seeking to conduct online interactive casino gaming.
The bill also stresses the significance of responsible gambling and proposes to set aside $11 million for educational activities and addiction treatments. Players would receive a problem gambling message after they deposit a total of $2,500, and there would be an annual limit of $2,500 per credit card.
The Situation in Other States
Online gambling is legal in seven states, including Connecticut, Pennsylvania, and New Jersey. One of Addabbo’s arguments is that these states have been generating massive amounts in revenue and tax from legal gambling. According to Addabbo, the revenue exceeded $1 billion in Pennsylvania and New Jersey in 2021, and each state generated $120 million in tax.
Addabbo is confident that New York would become a leader in the field should the bill pass, just as it is in the online betting industry, generating almost $700 million in tax in the first year of operation:
Similarly, if authorised, New York would quickly become the national leader in online casino gaming, generating hundreds of millions of dollars in tax revenue annually for the state as it continues to recover from the economic downturn caused by the COVID-19 pandemic.
