The Fate of iGaming in New York Hangs in the Balance
In a surprising turn of events, Governor Kathy Hochul's 2025 budget proposal has omitted Senator Joseph Addabbo Jr.'s much-discussed iGaming bill. This exclusion casts doubt on the future of online gambling in New York and signals potential opposition from the governor during this year's legislative session. The proposed legislation, which seeks to impose a 30.5% tax rate on online casino revenue, is not gaining the traction many supporters had hoped for.
High Stakes for New York's Economy
The debate over legalizing online gambling is not merely a moral or regulatory issue; it has significant economic implications for the state of New York. After the inclusion of online sports betting in the 2022 budget with a hefty 51% tax rate, proponents of iGaming are advocating for its legalization as a means to boost state profits and alleviate budget shortfalls. With neighboring states already cashing in on the lucrative market, New York risks losing out on substantial revenue streams to both legal operations elsewhere and illegal activities within its borders.
Industry Skepticism and Lobbyist Influence
Despite the financial arguments in favor of iGaming, industry lobbyist Steve Brubaker expresses skepticism about the bill's chances of passage. He points out that if the bill were to pass, companies might be required to divest certain interests before they could apply for a license, adding a layer of complexity to the process. Additionally, Brubaker hints at potential changes in the legal language from last year that may have been made to benefit specific industry players—a common practice in legislation influenced by lobbyists.
Brubaker's comments shed light on the behind-the-scenes maneuvering that often shapes such bills. "You see bills 'legislating market share' all the time. It is the primary reason lobbyists exist," he remarks, highlighting the pervasive role of lobbying in legislative outcomes. Concerning the iGaming bill, he observes, "Seems like a very light touch for Evolution. Has me thinking that last year’s [language from law firm] L&W was replaced with more favorable language by Evo or by the casino companies who use them."
A Battle for Control
The ongoing saga of online gambling legislation is not just about whether iGaming will be legalized but also about who will control the burgeoning market. Brubaker anticipates that even if the current bill does not pass, amendments could shift the focus or direction of the struggle for dominance, particularly over live dealer games—a critical component of the online casino experience.
Senator Addabbo and Representative Pretlow have emphasized the urgency of passing the bill, considering the state's financial needs. They argue, "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."
An Uncertain Future
The trajectory of online gambling in New York remains uncertain, with the outcome poised to significantly impact the state's economy and gaming industry. As the legislative session unfolds, all eyes will be on Albany to see if lawmakers can reconcile the competing interests and craft a bill that serves the state's needs while navigating the complex landscape of industry politics. For now, the stakes couldn't be higher, and the next move in the game of iGaming legislation is anyone's guess.
With so much money and influence in play, the future of iGaming in New York is a high-profile issue that will undoubtedly continue to generate heated debate among legislators, industry stakeholders, and concerned citizens alike. As the discussion progresses, the only certainty is that the decisions made in the state capital will reverberate through the halls of gaming establishments and the pockets of New York residents for years to come.