A Closer Look at New York's iGaming Bill and Its Legislative Journey
In the bustling corridors of New York's legislative chambers, the fate of online gambling hangs in the balance. The recent revelation that Senator Joseph Addabbo Jr.'s iGaming bill did not make it into Governor Kathy Hochul's 2025 budget proposal has stirred up conversations about the future of digital betting in the Empire State. This omission signals a potential lack of support from the governor during the 2024 legislative session, casting doubt on the bill's prospects.
The proposed legislation seeks to establish a framework for legalizing online casino games, with a suggested tax rate of 30.5% on revenue generated from such activities. This move comes on the heels of New York's decision to include online sports betting in its 2022 budget, which carries a hefty 51% tax rate. The introduction of iGaming could serve as a financial boon for the state, potentially filling coffers and addressing budgetary shortfalls.
However, without the legalization of iGaming, New York risks losing valuable revenue streams to neighboring states where such activities are permitted, or worse, to illegal operations. It is a pressing concern that hundreds of millions of dollars could slip through New York's fingers, funds that could otherwise be funneled into public services like education.
Industry Insights and Lobbyist Perspectives
The gaming industry is no stranger to political maneuvering, and lobbyists often play a pivotal role in shaping legislation to benefit specific companies. Steve Brubaker, an industry lobbyist, has expressed skepticism regarding the bill's chances of passing. He hinted at possible changes in the language of last year's legal provisions, suggesting that these alterations might have been made to favor certain players within the industry, such as Evolution (Evo) or the casino companies utilizing their services.
"Seems like a very light touch for Evolution. Has me thinking that last year’s L&W language was replaced with more favorable language by Evo or by the casino companies who use them," said Brubaker, hinting at the intricate dance between lawmakers and industry stakeholders.
Brubaker further elaborated on the role of lobbyists in the legislative process: "You see bills ‘legislating market share’ all the time. It is the primary reason lobbyists exist." His comments shed light on the behind-the-scenes battles that shape the competitive landscape of regulated industries.
Moreover, Brubaker anticipates that if the bill does pass, companies may need to divest certain interests before they can apply for a license, potentially reshaping the market. He also pointed out the likelihood of amendments that could alter the bill's trajectory, reflecting the ongoing tussle for control over live dealer segments of the market. "While I do not see this bill passing, it will be interesting to see amendments that may be added to change the direction or focus of what is a battle for control of live dealer," he remarked.
Economic Implications and Legislative Uncertainty
The stakes are high, and the outcome of the iGaming bill carries significant weight for New York's economy and its burgeoning gaming industry. Legislators like Sen. Addabbo and Rep. Pretlow have championed the cause, emphasizing the critical nature of capturing revenue that is currently slipping away. "At a time of fiscal distress for our state, we cannot continue to allow hundreds of millions of dollars to be funneled into neighboring states or into the pockets of disreputable companies—particularly when those funds could be used to further bolster funding for public schools or other worthy services," they argued.
As the debate continues, the future of online gambling in New York remains uncertain. Lawmakers, industry experts, and citizens alike are watching closely to see how the situation unfolds. Will the Empire State embrace the digital evolution of gaming, or will it stand by as potential revenue streams cross state lines? Only time will tell, but one thing is clear: the conversation around iGaming in New York is far from over, and its resolution will have lasting impacts on the state's fiscal landscape and its residents' welfare.