Legal Online Gambling Proposal Reintroduced in New York State
A renewed effort to legalize online gambling in New York is underway as State Sen. Joseph Addabbo reintroduced a bill proposing the legalization of iGaming across the state. The proposed bill, SB 856, would not only legalize online gambling but also online lotteries, including the purchase of tickets for lotteries such as Mega Millions and Powerball.
If the proposal is approved and signed into law by Gov. Kathy Hochul, New York would join a growing list of states that offer legal online gambling activities. One of the major benefits of iGaming would be the tax revenue it would generate for the state. Operators looking to offer online gambling activities would be subject to a 30.5% tax and a $2 million one-time license fee, according to the proposal.
The revenue generated from legal iGaming activities would benefit the Lottery Fund in the state, providing crucial financing for education across New York. This comes at a time when the state is facing a significant budget deficit, projected to reach $4.3 billion by 2024 and possibly $8 billion for the following year.
Sen. Addabbo stressed the importance of legalizing iGaming, citing the hundreds of millions of dollars currently leaving the state or going to illegal gambling operators. He argued that keeping the money within the state could benefit public schools and other education programs. Projections suggest that a regulated iGaming market in New York could generate around $1 billion annually.
Under the proposed bill, sports betting operators, racinos, and tribal operators would all have the opportunity to apply for an online gambling license, creating a competitive and robust market. This initiative comes after Sen. Addabbo’s successful efforts to legalize sports betting in New York, which continues to generate tax revenue for the state.
As the bill is reintroduced for the new legislative season, it awaits the decision of New York lawmakers. If approved, it could significantly impact the state’s revenue and provide much-needed funding for education.