New York’s government has postponed a bill to legalize online gambling until at least next year: The legislative session in New York will conclude on June 2, 2022, and the online casino gaming bill did not pass far enough for the governor to sign. The bill (S8412) sought to legalize online slots and table games in New York state.
Online gambling, or iGaming, advocates emphasize the huge tax revenue generated by legalized sports betting in their arguments.
According to the bill’s statement of justification:
“This year, in its first month of operation, New York quickly became the leading mobile sports betting market in the nation, generating nearly $70 million in tax revenue in a single month. Similarly, if authorized, New York would quickly become the national leader in online casino gaming, generating hundreds of millions of dollars in tax revenue annually for the State as it continues to recover from the economic downturn caused by the COVID-19 pandemic.”
How Much Did the Bill Advance?
Senator Joseph Addabbo Jr. has been a big advocate for legalizing sports betting in New York. Earlier this year, he introduced S8412, a bill that would advance the cause.
The Racing, Gaming, and Wagering Committee passed the bill unanimously. Addabbo is the chair of the committee. Three legislators voted “Aye,” while two voted “Aye with reservations.”
Bill S8412 will have to wait until the next session for a chance to be enacted into law, as the state budget for the 2022-2023 fiscal year has already been finalized.
How Much Could New York State Gain From Online Casinos?
Gaming in online casinos is more lucrative than NY mobile sports betting, which has already paid off several million dollars in taxes for New York.
Online casinos are legalized in New York’s closest neighbors, New Jersey, Connecticut, and Pennsylvania. The money earned from casino gambling in each of those states has risen by almost exactly twice as much as mobile sports betting.
As an example, here’s a Bonus.com analysis of New Jersey and Pennsylvania:
- Pennsylvania: The taxable income from online casinos was twice that of mobile sportsbooks.
- New Jersey: Online casinos earned about 1.7 times more money than mobile sports betting.
New York has collected over $235 million in tax revenue since launching mobile sports betting in January 2022. If New York’s figures are comparable to its neighboring states, that might result in more than $450 million in additional tax income for the state.
“There’s a larger population who would probably take part in iGaming, which is why the revenue from iGaming would be so much greater than, in my opinion, and estimation, the revenue from mobile sports betting,”Joseph Patrick Addabbo Jr.
Sports betting is becoming increasingly popular across the United States, although online casino games continue to be even more popular.
The Future of Online Casinos In New York
The bill must pass through the finance committee before being approved by the Senate and Assembly. It then goes to the governor’s desk for signature in the next year. Because this current session is coming to a close, all of this will have to take place next year.
Senator Addabbo says that he intends to reintroduce the bill in 2023.