New York State Senator Joseph Addabbo is back for a fourth consecutive year with new legislation aimed at the legalization of real-money online casino gaming, reviving initiatives to establish iGaming within the state as lawmakers embark on a fresh legislative session.
Addabbo has introduced Senate Bill S02614, mirroring last year’s proposal, which would permit both online casinos and online lottery sales. The bill has once more been forwarded to the Senate Racing, Wagering, and Gaming Committee, which is chaired by Addabbo. Additionally, a companion bill, Assembly Bill A06027, has been filed by Assemblyperson Carrie Woerner.
This renewed push follows the previous year’s bill that did not progress while New York concentrated on issuing three downstate casino licenses. These licenses were awarded to Bally’s, Resorts World, and Hard Rock, each contributing a substantial $500 million license fee, resulting in a $1.5 billion influx for the state.
Addabbo, who played a pivotal role in legalizing mobile sports betting in New York, remarked that the conclusion of the casino licensing process opens the door for lawmakers to re-examine iGaming as early as 2026.
The proposed legislation aims to alleviate concerns from traditional brick-and-mortar casinos about market cannibalization by allocating 0.025% of iGaming tax revenues to a special fund dedicated to employee training, responsible gaming initiatives, health, and development. This fund is projected to receive a minimum of $25 million annually.
Under the current proposal, iGaming operators would face a taxation rate of 30.5% on their gross gaming revenue, with funds outside of the designated fund directed to education. This rate surpasses New Jersey’s tax rate of 19.75%, slightly exceeds Pennsylvania’s approximate 30% effective rate, and is higher than Michigan’s variable scale of 20% to 28%. However, it is considerably less than the 51% tax rate imposed on New York’s mobile sportsbooks.
“Many elements in my bill are a foundation to build upon,” Addabbo expressed to Gambling Insider.
Mobile sports betting has seen $996.8 million in receipts over the first nine months of the current fiscal year and is on track to exceed the $1.2 billion projected in the recently adopted 2026 budget. Since its inception in 2022, sports betting has accrued nearly $4 billion for the state.
The legislation’s fate largely hinges on Governor Kathy Hochul, who had excluded iGaming from previous budget proposals and is currently campaigning for re-election. Hochul is anticipated to outline her priorities in an upcoming State of the State address, which lawmakers perceive as a preliminary indicator of whether iGaming could be considered as a viable revenue source.
“Ultimately, if the governor is not interested in this revenue, if she isn’t inclined to assist individuals struggling with addiction, or if she prefers to see our funds flow to another state, then we won’t proceed,” said Addabbo. “It’s difficult to comprehend a rational governor making such choices.”
Addabbo has positioned this initiative as a financial strategy to tackle New York’s substantial multi-billion dollar budget deficit. The proposal specifies initial license fees of $2 million for casino, video lottery terminal facilities, or operator entities, and $10 million for third-party platform providers.
“This is solely a financial proposition,” Addabbo explained. “We want to secure immediate funding through license fees. I’m focused on improving the state’s financial standing.”
While Addabbo expressed he is “more hopeful than assured” regarding obtaining the governor’s backing, he recognized that the final legislation may be subject to negotiations, recalling that the state’s 2021 sports betting law included only about two-thirds of its original language.
“The final version could appear slightly different,” he noted. “Let’s initiate discussions. Let’s work out the path forward.”
Last month, Hochul enacted legislation that prohibits online sweepstakes casinos in New York.