Examining the Fate of iGaming Legislation in New York
In the ever-evolving landscape of online gambling, New York finds itself at a crossroads. The recent revelation that Senator Joseph Addabbo Jr.'s iGaming bill was not included in Governor Kathy Hochul's 2025 budget proposal has stirred discussions among legislators and industry stakeholders alike. This omission signals potential challenges for the bill's passage during the 2024 legislative session.
The proposed legislation calls for a 30.5% tax on online casino revenue, a significant figure, yet notably lower than the 51% tax rate applied to online sports betting, which made its way into the 2022 budget. The introduction of online sports betting was seen as a move to capitalize on digital gaming revenues, and many view the expansion into iGaming as a logical next step to further increase state profits and mitigate budget shortfalls.
The Economic Implications of iGaming
Legalizing iGaming could be a financial boon for New York, offering a new revenue stream that proponents argue is currently being siphoned off by neighboring states with legal online casinos or by illegal operations. The urgency of capturing this untapped market is underscored by the risk of losing out on potential income that could support public services, such as education.
Senator Addabbo and Representative Pretlow have been vocal about the missed opportunities, stating, "At a time of fiscal distress for our state, we cannot continue to allow hundreds of millions of dollars to be funneiled 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."
Lobbying Influence and Industry Dynamics
However, the path forward for iGaming in New York is fraught with complexity. Industry lobbyist Steve Brubaker has expressed skepticism regarding the bill's chances, citing potential amendments and the intricate power play between various industry entities. His comments highlight the influence lobbyists wield in shaping legislation, often to benefit particular companies within the sector.
Brubaker's insights suggest that last year's legal language may have been altered to favor certain industry players, possibly including Evolution Gaming (Evo) or its affiliated casino companies. He remarked, "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."
He further elaborates on the role of lobbyists in legislative processes: "You see bills ‘legislating market share’ all the time. It is the primary reason lobbyists exist." These observations underline the strategic maneuvering that takes place behind closed doors as companies vie for advantageous positions in a regulated market.
Should the bill pass, it is anticipated that companies might need to divest interests before applying for a license, an indication of the stringent regulations that could govern the nascent iGaming industry in New York.
The Uncertain Future of Online Gambling in New York
Despite these hurdles, the outcome of the iGaming bill remains a subject of intense speculation and debate. The potential economic impact of legalizing online casinos is significant, promising to reshape New York's economy and gaming industry. Yet, the interplay of political will, lobbying efforts, and industry readiness creates an unpredictable scenario.
Brubaker encapsulates this sentiment, stating, "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." His comment acknowledges the contentious nature of the bill and the various interests at stake.
The future of online gambling in New York indeed hangs in the balance, with the stakes high for both the state's coffers and the gaming industry's major players. As the 2024 legislative session unfolds, all eyes will be on Albany to see whether New York will double down on its bet on digital gaming or fold its hand for the time being.