Examining the Future of iGaming in New York
The landscape of online gambling in New York is facing a potential shift, with Senator Joseph Addabbo Jr.'s iGaming bill at the center of discussions. However, the bill's prospects have hit a roadblock as it was notably absent from Governor Kathy Hochul's 2025 budget proposal. This omission signals a lack of support from the governor, casting doubt over the bill's viability during the 2024 legislative session.
The proposed legislation would introduce a 30.5% tax on online casino revenue, aligning with the state's approach to online sports betting, which was incorporated into the 2022 budget with a hefty 51% tax rate. The introduction of iGaming is seen by proponents as a strategic move to bolster state profits and mitigate budget shortfalls. With neighboring states already reaping the benefits of legalized online gambling, there is a growing concern that New York may continue to lose potential revenue streams to both out-of-state competition and illegal operations.
Despite the financial incentives, industry lobbyist Steve Brubaker expresses skepticism regarding the bill's passage. He highlights the complexities of the legislative process, where lobbyists play a significant role in shaping laws to benefit specific companies. Brubaker's insights suggest that amendments to the bill's language could be indicative of behind-the-scenes maneuvering to favor certain industry players, possibly altering the competitive landscape for live dealer games.
Companies interested in entering the market may face additional hurdles if the bill passes, potentially requiring them to divest certain interests before applying for a license. This provision underscores the bill's far-reaching implications for the gaming industry, extending beyond tax rates and regulatory oversight.
Legislative Language and Lobbyist Influence
Brubaker's comments shed light on the intricacies of lawmaking, where lobbyists often influence legislation to serve the interests of particular businesses. He alludes to last year's legal language being modified, hinting at a scenario where either Evolution Gaming (referred to as "Evo") or casino operators that partner with them might have secured more favorable terms. This practice of "legislating market share," as Brubaker puts it, is commonplace and underscores the primary purpose of lobbying efforts.
With the future of online gambling in New York hanging in the balance, the outcome of the iGaming bill will have significant repercussions for the state's economy and gaming sector. Legalizing iGaming could provide a substantial boost to state funds, with the potential to redirect money currently flowing into neighboring jurisdictions or unregulated markets back into New York's coffers. These funds could then support public services such as education, as highlighted by Sen. Addabbo and Rep. Pretlow in their joint statement.
At a time when New York is grappling with fiscal challenges, the legislators underscore the urgency of capitalizing on available revenue sources. They argue against allowing vast sums of money to escape to other states or fall into the hands of disreputable companies, especially when those resources could significantly enhance funding for public schools and other valuable services.
The Battle for Control of Live Dealer Games
The debate over the iGaming bill is not just about taxation and regulation; it also encompasses control over specific gaming services like live dealer games. Brubaker anticipates an intense struggle for dominance in this niche, with possible amendments to the bill influencing the direction of this battle. His prediction that the bill may not pass, however, does not preclude the possibility of changes that could alter the playing field for various stakeholders.
In conclusion, while the fate of Senator Addabbo's iGaming bill remains uncertain, its implications are clear. The legislation has the potential to transform New York's gaming industry and contribute significantly to the state budget. As the 2024 legislative session unfolds, all eyes will be on Albany to see whether lawmakers will seize the opportunity to expand the state's gambling offerings or maintain the status quo, leaving New York to contend with the economic realities of missed opportunities.