New York Budget Cut in 2024 Doesn’t Impact Online Casinos

January 8, 2024, marked the second anniversary of the legalization of online sports betting in New York. The activity saw unprecedented success, with billions of wagers placed and significant revenue generated for both the state and licensed operators. Despite the booming success of sports betting, it appears that online gambling may not be legalized in the near future.

Governor Kathy Hochul’s announcement of the state’s FY 2025 Budget did not mention online gambling, raising doubts about the potential for legalization this year. The $233 billion budget focused on fiscal discipline and did not include provisions for online gambling. Hochul emphasized the importance of pursuing policies that benefit New Yorkers while maintaining fiscal responsibility.

Despite the potential for tax revenue from legalizing online gambling, the activity was not included in the budget. However, this does not rule out the possibility of it being considered by lawmakers in the future.

The budget announcement came shortly after Senator Joseph Addabbo introduced Senate Bill 8185, which calls for the legalization of online lottery and iGaming activities in New York. This follows a previous proposal by Addabbo and demonstrates his continued dedication to the issue.

Under the new proposal, online gambling operators would be subject to a 30.5% tax on gross gaming revenue, while players would need to be at least 21 years old to participate. Additionally, independent contractors seeking a license in the state would face a $10 million one-time fee, while existing operators would pay a $2 million fee.

It remains to be seen whether online gambling will gain traction in New York, but the introduction of Senate Bill 8185 indicates that the issue is still being actively pursued by lawmakers. Despite its absence from the budget, the future of online gambling in New York is uncertain.