Uncertain Future for Online Gaming in New York
The landscape of online gambling in New York remains uncertain as Senator Joseph Addabbo Jr.'s iGaming bill faces exclusion from Governor Kathy Hochul's budget for 2025. This omission signals potential gubernatorial disinterest in the legislation, which could have significant implications for the state's economy and gaming industry.
The Stakes of iGaming Legislation
Senator Addabbo's proposed bill sets forth a 30.5% tax on online casino revenue, aiming to tap into a lucrative market that could bolster the state's coffers. The introduction of online sports betting in the 2022 budget, taxed at an unprecedented rate of 51%, has already demonstrated New York's willingness to embrace digital betting platforms. However, with the future of iGaming hanging in the balance, there is a growing concern that without legalization, New York may continue to lose potential revenue to neighboring states or underground operations.
Supporters of the bill argue that legalizing iGaming could provide a much-needed financial boost, particularly in addressing budget shortfalls. They emphasize that without this source of income, funds that could otherwise support public services like education are being siphoned off by other states or falling into the hands of illegitimate companies.
Lobbying and Legislative Challenges
The role of lobbyists in shaping legislation cannot be overstated, and the iGaming bill is no exception. Steve Brubaker, an industry lobbyist, has expressed skepticism about the bill's passage. He suggests that last year's legal language, potentially crafted to benefit certain players in the industry, might have been altered to favor different entities, such as Evolution (Evo) or casino companies that partner with them.
Brubaker's comments shed light on the often opaque process of legislative drafting, where lobbyists work to secure advantages for specific companies. This practice can lead to bills that, intentionally or not, carve out market share for certain operators. In the case of iGaming, the stakes are high, and the outcome will likely shape the competitive landscape for live dealer games and other online casino offerings.
Moreover, the bill includes provisions that would require companies to divest certain interests before applying for a license. This requirement underscores the complex regulatory environment that businesses must navigate to enter the New York market, should iGaming become legal.
Economic Impact and Industry Perspectives
The potential economic impact of the iGaming bill is profound. Legalization could open the door to increased state profits, providing a fiscal uplift in times of need. Senator Addabbo and Representative Pretlow have highlighted the opportunity cost of inaction, pointing out the substantial sums of money that could be redirected to support vital public services.
Despite these arguments, the bill's prospects remain unclear. Industry insiders like Brubaker anticipate a challenging path ahead, with possible amendments that could alter the bill's trajectory. Such changes could either dilute the original intent of the legislation or redirect its focus, reflecting the ongoing battle for control within the industry.
Looking Ahead
The absence of Senator Addabbo's iGaming bill from Governor Hochul's 2025 budget proposal may indicate a lack of support during the 2024 legislative session. Nonetheless, the conversation around iGaming in New York is far from over. As stakeholders continue to debate the merits and drawbacks of legalization, the state stands at a crossroads, with important decisions to make about the future of online gambling.
The ultimate fate of the iGaming bill carries significant weight for New York. Whether it passes, fails, or undergoes substantial revision, the ramifications will ripple through the state's economy and the gaming industry at large. With so much at stake, all eyes will remain on Albany as lawmakers grapple with this contentious issue.