Bill Seeking the Legalization of Casinos and Online Lottery Sales in New York Re-Introduced
Senator Joseph Addabbo from New York has once again introduced a bill seeking to regulate and license online casinos as well as online lottery sales and games in the state. This year's bill is almost the same as last year's bill, where four casinos downstate, soon-to-be-built casinos upstate, tribal casinos, online sports betting operators, and even VLT parlors will be eligible for obtaining an online casino license. Senator Joseph Addabbo is reigniting his campaign to legalize and regulate online casinos in New York. With the reintroduction of his bill in the New York Senate, Addabbo aims to transform the gaming landscape in the Empire State by legalizing online casinos and online lottery sales, while also addressing the rising popularity of sweepstakes gaming. A familiar approach with expanded opportunities The language of the new bill closely mirrors last year's effort to legalize iGaming in New York. It proposes that the state's four casinos located downstate, the soon-to-open upstate casinos, tribal casinos, video lottery terminal (VLT) parlors, and existing online sports betting operators be eligible to apply for online casino licenses. Additionally, the bill allocates three more licenses to be awarded through a bidding process. In a bid to strengthen the casino industry and create employment opportunities, the bill sets aside $25 million annually for employee training and development programs in casinos. Furthermore, it stipulates that online casino operators must house their servers within state-licensed casinos to ensure regulatory oversight and compliance. The proposal also targets unregulated entities, particularly offshore operators and sweepstakes gaming sites. A provision includes a three-year "timeout" period for any unauthorized operators offering contests or games in the state, effectively barring them from the market during this time. Addressing sweepstakes gaming sites One of the key issues Senator Addabbo seeks to address this legislative session is the prevalence of sweepstakes gaming sites, which often operate in a legal gray area. These platforms lure customers with free-play advertisements and the opportunity to win prizes through the purchase of virtual gold coins. Addabbo's bill aims to either ban these sites outright or incorporate them into the regulated market, similar to laws enacted in states like Michigan, Washington, and Idaho. "To close this loophole, I will work to ban or incorporate Sweepstakes Casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for iGaming as a safe, effective alternative for online casino enthusiasts," said Addabbo in a press release. "By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents." Challenges ahead for iGaming expansion Despite Addabbo's efforts, last year's push for legalizing online casinos saw little traction. Public sentiment also appears lukewarm, with surveys indicating less than half of New Yorkers support iGaming initiatives. Opposition largely stems from concerns about problem gambling and the potential social consequences of making casino games more accessible. However, Addabbo argues that regulating online casinos could mitigate many of these issues. By providing a safe and legal alternative to unregulated platforms, the state could better monitor and address gambling addiction. Additionally, legalizing online casinos could generate significant tax revenue for New York, benefiting various state programs. "Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins," Addabbo emphasized. "I encourage my colleagues and the Governor to take action against unregulated sweepstakes casinos while reconsidering the benefits of allowing legal iGaming operators to provide sanctioned services in a popular and ever-growing industry." The success of Addabbo's bill will depend on garnering broader support from lawmakers and addressing public concerns about gambling expansion. If passed, the bill would position New York as a major player in the iGaming industry, joining states like New Jersey and Pennsylvania that have already seen substantial revenue from legalized online casinos.