New York iGaming Debate Returns In 2026

Now that Empire State has cleared the way for three "Las Vegas Style Casinos" in The Big Apple, legislators again this year will determine if the timing is right to legalize New York iGaming.

State Sen. Joseph Addabbo Jr., chair of the Senate Racing, Gaming and Wagering Committee, reintroduced legislation on the first day of the 2026 session. His bill authorizes and regulates online casinos statewide, marking the fourth consecutive year he has pushed the issue in Albany. This is a big win for the best online casinos.

Addabbo’s proposal, Senate Bill 2614, would legalize online casino games and iLottery sales. It also allows commercial casinos, video lottery terminal facilities, tribal casinos operating under compact, and existing online New York sports betting operators to offer iGaming.

A companion measure, Assembly Bill A05922, sponsored by Carrie Woerner, ensures the issue of iGaming will again receive consideration in both chambers.

Bill Mirrors Prior-Year Efforts, With Defined Costs and Limits

The legislation is identical to the bill Addabbo filed in January 2025. It now lies with to the Senate Racing, Gaming and Wagering Committee. Here's a look at the key numbers and elements:

  • iGaming tax rate: 30.5% of gross gaming revenue, with operators barred from deducting promotional credits or bonus bets
  • License Fee: $2 million per casino, VLT facility, or eligible operator
  • Independent Contractor Fee: $10 million licensing to host an iGaming platform and display its own brand
  • Games Allowed: Table games, slot machines with spinning reels, poker tournaments, and live dealer games
  • Online lottery: Legalized

All interactive gaming servers would be required to be located at licensed New York gaming facilities, reinforcing regulatory oversight. The bills also authorizes the Gaming Commission to establish rules governing interstate gaming compacts, laying the groundwork for potential multi-state online poker.

How Much Revenue Is At Stake?

Addabbo has also pointed to the December enactment of his bill banning sweepstakes casinos as another key shift, opening the door for more lost revenue and arguing that removing those unregulated platforms clears space for a regulated iGaming market.

Addabbo has long argued that iGaming could generate significant new revenue for the state, estimating annual tax proceeds of up to $1 billion — comparable to New York’s mobile sports betting haul.

In 2024, the state collected more than $1.04 billion in sports betting tax revenue under its 51% tax rate. Top online casino apps typically generate higher gross revenue than sportsbooks, strengthening the fiscal case, despite a lower tax rate.

Labor Opposition Still Looms

The biggest remaining obstacle remains organized labor, particularly the Hotel and Trades Council, which has opposed iGaming over concerns it could cannibalize brick-and-mortar casino jobs across the state.

The bills include provisions earmarking at least $25 million annually for employee training, responsible gaming education, health initiatives, and workforce development.

Whether that is enough to shift opposition remains unclear, but with sweepstakes platforms sidelined and downstate casinos settled, Addabbo is signaling that 2026 may represent New York’s clearest path yet toward legal online casinos.

Downstate Casino Process No Longer a Roadblock

For the first time since 2023, the downstate casino licensing issue is no longer hanging over the iGaming debate.

In December, the New York State Gaming Commission awarded licenses to Bally’s Bronx, Resorts World New York City at Aqueduct, and Metropolitan Park in Queens — the latter backed by Hard Rock International and New York Mets owner Steve Cohen.

The completion of that politically sensitive process cleared the way for $15 billion in development and removed what many lawmakers viewed as a prerequisite to considering further gaming expansion. Gov. Kathy Hochul and legislative leaders said no additional gaming measures could advance until the three NYC casinos received clearance.