New York Once Again Examining iGaming

With the New York downstate casino licensing issue behind the state for the first time since 2023, is now the time to strike on iGaming?

Sen. Joseph P. Addabbo Jr. (D-15) believes so, as the Empire State senator re-introduced SB 2164, which seeks to legalize iGaming in New York. If approved, casinos, video lottery terminal facilities, online sports betting operators, and New York tribes will be eligible to offer iGaming.

It is the fourth year in a row Addabbo has filed an iGaming bill in the state.

Identical Bill to 2025 Legislation

Addabbo’s bill is the same bill he introduced in January 2025. It has been referred to the Senate Racing, Gaming, and Wagering committee. Its Assembly counterpart, A6027, currently sits in the Assembly Racing and Wagering committee.

The bill sets the iGaming tax rate at 30.5% of a license holder’s gross gaming revenue. Operators will not be able to deduct any promos or bonus bets from their revenue totals. License fees will be set at $2 million for each casino, video lottery terminal facility, or operator authorized to conduct iGaming.

Any approved independent contractor looking to host an operator’s iGaming platform and display its brand will be required to pay a $10 million license fee.

If legalized, the bill will authorize any internet-based version or equivalent of a table game, slot machine constituting spinning reels, or poker tournament. Live dealer games will also be authorized under the bill.

The legislation will also legalize iLottery gaming.

Downstate Casino License Hurdles Cleared

One large hurdle for iGaming that is no longer in play is the issue of New York’s downstate casino licenses. Many believed iGaming would have to take a backseat while the state and its gaming commission considered the new downstate casino licenses.

In December, the New York State Gaming Commission awarded casino licenses to Bally’s Bronx, Hard Rock Metropolitan Park at Willets Point, and Resorts World New York City in Queens.

Resorts World, Bally’s Bronx, and Metropolitan Park remain as the three finalists for licenses. Resorts World is planning a $5.5 billion, 5.6 million-square-foot proposal for a casino in Queens; Bally’s Bronx proposed a $4 billion, 3 million-square-foot facility in the Bronx; and Metropolitan Park, a partnership between Steve Cohen and Hard Rock International, proposed a multibillion-dollar casino and open space project on 50 acres of an asphalt parking lot at Citi Field, home of the New York Mets.

This now potentially allows for more discussion and attention to iGaming legalization as a way to bring in hundreds of millions of dollars in tax revenue to the state.

Addabbo has previously stated that New York iGaming could bring in $1 billion annually in tax revenues, which would be similar to what the state bring in for online sports betting. Online sports betting — which is taxed at a rate of 51% — resulted in $1,042,442,978 in tax revenues in 2024.

Despite iGaming being taxed at a lower rate than sports betting, operators tend to bring in more in terms of revenue when compared with online sports betting.

Still Major Sources of Opposition

New York iGaming still has a fairly large opponent in the Hotel and Trades Council.

The union has opposed the legalization of New York iGaming for the last several years, mainly due to fears that it will cannibalize brick-and-mortar casino business in the state. The union is hoping to preserve casino business and jobs for its members.

To appease the union, the bill includes a fund to earmark at least $25 million in each fiscal year for the purpose of employee training, responsible gaming training and education, health, and development.