The Fate of iGaming in New York Hangs in the Balance
In the ever-evolving landscape of online gaming, New York finds itself at a crossroads. The much-discussed iGaming bill, championed by Senator Joseph Addabbo Jr., has been conspicuously absent from Governor Kathy Hochul's proposed budget for 2025. This omission signals a potentially rocky path ahead for the legislation during the 2024 legislative session.
The bill in question sets forth a tax rate of 30.5% on online casino revenue—a significant figure, though still notably lower than the hefty 51% tax imposed on online sports betting revenues that made its way into the state's 2022 budget. Proponents argue that the legalization of iGaming could serve as a financial boon for the state, shoring up funds for public services such as education while addressing budget shortfalls.
Without the inclusion of iGaming, New York stands to lose substantial revenue streams to neighboring states where such activities are legal, or worse, to illegal gambling operations. The urgency of capturing these funds is underscored by statements from Sen. Addabbo and Rep. Pretlow, who stress the importance of redirecting potential earnings back into the state's coffers, particularly to support public schools and other valuable services.
Industry Skepticism and Legislative Challenges
Despite the apparent economic benefits, industry insiders remain skeptical about the bill's chances of passage. Steve Brubaker, an industry lobbyist, has expressed doubt, suggesting that the bill may be mired in political maneuvering and influence from vested interests. He points out that last year's legal language, which might have disadvantaged certain players, may have been altered to benefit companies like Evolution or those utilizing their services.
Brubaker's insights shed light on a common legislative practice where bills often seem to legislate market share, favoring specific companies over others—an issue he attributes to the very existence of lobbyists. His skepticism extends to the future of this particular bill, as he anticipates potential amendments that could alter its trajectory, underscoring the ongoing battle for control within the live dealer segment of the industry.
Another hurdle for companies looking to enter the market, should the bill pass, is the possibility of being required to divest certain interests before applying for a license. This stipulation could create a significant barrier to entry, affecting the competitive landscape of the iGaming sector in New York.
An Uncertain Future for Online Gambling in New York
The broader implications for New York's economy and gaming industry cannot be overstated. The outcome of the iGaming bill carries with it the potential for profound economic impact. Legalization could translate into increased state profits, while failure to pass the bill could result in continued financial leakage to other regions and illicit entities.
As the debate continues, all eyes will be on Governor Hochul's administration and the state legislature to see whether they will take the steps necessary to bring iGaming into the fold of legalized gambling in New York. The decision will undoubtedly shape the future of the gaming industry in the Empire State and could set a precedent for how other states approach the integration of online gaming into their markets.
For now, the fate of online gambling in New York remains uncertain. Stakeholders from across the spectrum—from legislators to industry leaders, and from educational advocates to taxpayers—are waiting with bated breath to see how the state will navigate this complex issue. As the 2024 legislative session unfolds, it will become clear whether New York will embrace the potential economic windfall of iGaming or if the state will fold its hand and watch potential revenue slip across its borders.
With the stakes so high, the unfolding drama surrounding the iGaming bill is more than just a matter of legislative procedure; it's a high-stakes game with real-world consequences for the people and economy of New York. As Senator Addabbo and his colleagues press forward, the question remains: Will New York roll the dice on iGaming, or will the opportunity simply be another roll of the dice that comes up short?