Addabbo Launches an iGaming Bill for the Third Year in a Row
Senator Joseph Addabbo Jr. has once again taken the lead in advocating for the legalization of online casinos in New York by filing Senate Bill 2614. This initiative marks his third consecutive year of efforts to establish a regulated iGaming framework in the state, following previous attempts that have yet to gain traction. Addabbo’s commitment to this cause underscores the growing interest in online gaming as a potential revenue source for New York, especially in light of the success seen in neighboring states.
The newly introduced SB 2614 has been referred to the Senate Committee on Racing, Gaming, and Wagering, where it will undergo scrutiny and discussion. The bill aims to create a comprehensive online gaming framework that includes significant regulatory changes related to licensing and taxation. By doing so, Addabbo hopes to facilitate the launch of a robust iGaming industry in New York, which has been a topic of debate for several years.
Under the provisions of SB 2614, various entities—including casinos, video lottery terminal (VLT) companies, sportsbooks, and tribal operators—would be eligible to apply for licenses to operate online gaming platforms. A notable stipulation within the bill is the exclusion of companies that have previously engaged in unlicensed gambling activities in New York from obtaining a license. This measure aims to ensure that only reputable operators can participate in the state’s iGaming market.
To further delineate the financial commitments required for participation, the bill stipulates a one-time licensing fee of $2 million for existing land-based operators wishing to expand into iGaming. In contrast, independent contractors looking to host an operator’s online casino platform would face a significantly higher fee of $10 million. Additionally, the bill limits each operator to a single online gaming “skin,” which is a term used to describe a branded version of an online gaming platform.
An Emphasis on Safer Gaming
If SB 2614 successfully passes through the legislative process, it would represent a significant milestone for New York, finally establishing a legal framework for iGaming after years of stalled attempts. Addabbo envisions that the introduction of online casinos could generate substantial tax revenue for the state, proposing a tax rate of 30.5% on operators’ gross gaming revenue (GGR). This revenue could be a boon for state finances, especially in the wake of budgetary pressures exacerbated by the COVID-19 pandemic.
In addition to the economic benefits, Addabbo’s proposal places a strong emphasis on safer gaming practices. The bill mandates that iGaming servers be located on the premises of licensed retail gaming facilities, ensuring a direct connection between online operations and physical locations. This requirement aims to enhance regulatory oversight and accountability.
Moreover, the proposed framework includes stringent measures to promote responsible gambling. Operators would be required to implement comprehensive safer gambling protocols, including age verification processes and tools for self-exclusion. While the bill does not impose a complete ban on gambling with credit, it does set a limit on credit card funding at $2,500 per year, aiming to mitigate the risks associated with excessive gambling.
Furthermore, SB 2614 allocates resources for problem gambling education and treatment programs within the state, reflecting a commitment to addressing the potential negative impacts of expanded gaming options.
Addabbo’s Efforts Continue
Senator Addabbo’s advocacy for online gambling is not a new endeavor. His previous legislative efforts include Senate Bill S9226, which was filed last year and aimed to legalize online poker in New York. In that same year, he also sought to persuade the Governor to incorporate iGaming provisions into the state budget, highlighting his determination to see this initiative come to fruition.
In addition to his push for iGaming, Addabbo has been vocal against the burgeoning sweepstakes sector, which he and many industry stakeholders argue constitutes illegal online gambling. He is currently working on a separate measure aimed at prohibiting these controversial grey market games in New York. This stance contrasts sharply with the approach taken by New Jersey, which has proposed regulations for sweepstakes, potentially allowing the state to capitalize on the tax revenue generated by this growing vertical.
As the conversation around online gaming continues to evolve, Addabbo’s efforts reflect a broader trend in the United States, where states are increasingly recognizing the potential benefits of regulated online gambling. With SB 2614, New York may be on the cusp of joining the ranks of states that have embraced the iGaming industry, paving the way for a new era of gaming in The Empire State.