New York Looking At Online Casino Legislation

By Ben Hamill - March 02 2022

New York Looking At Online Casino LegislationIt wasn’t long ago that New York introduced legal online sports betting. Now, unsurprisingly, it seems as if the state is swiftly moving on to legalising an online casino market. Senator Joseph P. Addabbo Jr has come forward with the new Bill S8412, the focus of which is on making iGaming legal. The Bill is only a proposal at this time. But given how successful online sports betting has been, chances are it is only a matter of time until the rest of the iGaming market is opened up.

It was in January 2022 that online sports betting was officially legalized. Since then, a number of records have been swiftly passed, including a staggering betting handle of over US$2 billion. Who knows how high the numbers could climb if a New Yorker could also visit an online casino? Though, according to the senator, it is all about generating additional tax for the state.

Big Local Gambling Plans

Those paying attention will know that Addabbo was one of the major driving forces behind legalized online sports betting. Hence it only makes sense that it would be him making the first moves with Bill S8412. But there are some differences in his approach to legalizing the online casino market. The most notable being the proposed tax levy, which is drastically lower.

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Online sports betting was legalized with a heavy 51% tax rate on operators, meaning that the majority of revenue generated is going straight back into the state. But the new Bill suggests a levy on gambling games of only 25%. The lowered amount makes the proposition vastly more enticing for operators, most likely as a way to encourage growth in the market. This number is still speculative at the moment, and it remains to be seen if the legislation will even be passed at all.

Big Money Making Potential

Even with the lower levy, the senator is predicting massive potential success. According to his numbers an additional US$475 million could be generated annually. This isn’t including the once off online casino licensing fees, which would add an additional US$150 million. So, there is certainly plenty of potential for additional income. Looking closer, the license fees break down to casino and operators paying US$2 million in fees, while independent contractors would be paying fees of US$10 million.

New York has already quickly become a leader in revenue generated by sports betting. It isn’t difficult to imagine that it could also become an online casino powerhouse. At this point it all depends on how the senate responds to Bill S8412.