Maybe the third time will be the charm for an online casino bill in New York. While excited New Yorkers may be thrilled to hear that efforts to legalize online casinos have been reignited, some are surprised by what’s missing from the newest bill and that sweepstakes casinos are now part of the conversation.
But let’s start with the fact that lawmakers in the Empire State are considering legalizing online gambling again in 2025. The state's Senate has received new legislation permitting casino-style games online, including poker.
Senator Joe Addabbo, who chairs the Senate Racing, Gaming, and Wagering Committee, introduced bill S2614. Its language is virtually identical to last year’s.
This marks his third attempt in New York to advance online casino legislation. The state currently allows only limited legal online gambling, primarily in the form of sports betting. However, online casinos, poker, and other digital casino games are still prohibited.
What Does S2614 Call For?
Senate Bill 2614 would change New York's gambling landscape in many ways, including:
- Proposes a High Tax Rate: Suggests a 30.5% tax on online gaming revenue, which is more than twice New Jersey's rate.
- Regulates Online Lottery Sales: Includes measures for managing online lottery games and curbing unregulated gambling.
- Restricts Participation: Limits online gambling to those physically in New York, similar to other states.
- Supports the Gaming Workforce: Allocates $25 million annually for casino staff training and development.
- Ensures Regulatory Oversight: Requires online gambling servers to be located in state-licensed casinos.
- Targets Unregulated Operators: Implements a three-year ban on unauthorized operators, focusing on offshore sites.
Senator Addabbo’s proposal stands to increase revenue, ensure regulation, and bolster workforce development in New York’s gaming industry.
Sweepstakes Casinos Also in the Crosshairs
In a recent statement, Addabbo also put sweepstakes casinos, which use free-play options and in-game purchases to offer potential cash prizes, on the radar.
“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” stated Addabbo. “Many sweepstakes' operators are located offshore making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” Addabbo added.
The Senator stated that sweepstakes operators let people pay for virtual coins, which they can use to win more coins and then exchange them for cash prizes.“The use of money to play a game and win more money is simple gambling and should be safely regulated,” Addabbo noted.
Addabbo wants to ban sweepstakes casino games or include them in his plan to legalize online casinos.
New York Online Online Casino Bill Excludes MSIGA
S2614 does not include language that would allow New York to participate in multi-state player-pooling agreements, such as the Multi-State Internet Gaming Agreement (MSIGA).
There are five state states already in the MSIGA:
- Nevada
- Delaware
- Michigan
- New Jersey
- West Virginia
Pennsylvania is poised to be added to the list in the coming months, in an effort to enhance its online poker environment. The timeline suggests that online poker rooms in Pennsylvania, such as bet365 Online Casino PA, BetMGM Poker PA, Borgata Poker PA, BetRivers Casino PA, and Golden Nugget Online Casino, could link up with other states in the compact before the end of May.
If New York chooses a similar route, experts predict that the shift to include player pooling could take at least two to three years.
Leaving out any mention of joining MSIGA in New York's latest online casino bill might actually make passing it easier. This omission removes concerns about New York being answerable to other states in gaming matters. Moreover, online poker currently produces only a small portion of the potential revenue from broader online gaming options.
What’s Next For S2614?
S2614 has already been assigned to its first committee, the New York Senate Racing, Gaming, and Wagering Committee, which is chaired by State Senator Gary Pretlow. He has long backed the idea of online casinos in New York. This likely indicates strong early support for the iGaming bill.
In fact, the new S2614 is largely a reintroduction of Pretlow's 2023-24 bill, S8185.
That bill died when New York Governor Kathy Hochul completely left iGaming out of her 2025 budget plan. And let's not forget that all of this is happening as we wait to find out which operators will be awarded the three downstate casino licenses in New York by the end of the year.
The fate of the new New York online casino bill remains to be determined, but it appears the support may be there, and the third time may turn out to be the charm.
