New York Proposes Legalizing Internet Gambling for Poker and Casino Games
Breaking Down SB 2614: New York's Push for Online Poker
Guess who's back at it again in the Empire State? Senator Joe Addabbo Jr. has put New York online poker back on the table, introducing SB 2614 on the 21st of January. This is his third consecutive attempt to legalize online poker and casino games, following his bill last year (S4856).
Let's dive into the nitty-gritty details of this bill. SB 2614 aims to amend New York's Racing, Pari-Mutuel Wagering, and Breeding Law by introducing Article 15, legalizing iGaming and taxing operators at a rate of 30.5% on their gross gaming revenue. Capitalizing on the industry's growth, licensed operators, provided they meet the requirements, would be green-lit to offer table games, slot games, peer-to-peer poker, and live dealer games. The bill mandates that live dealer games be conducted in a live gaming studio located within New York state.
License applications come with a steep price tag; operators are required to pay a one-time $2 million fee, while independent contractors providing a mobile interactive gaming platform and displaying their brand must shell out a hefty $10 million. Each interactive gaming licensee would be allowed only a single branded skin, consistent with previous proposals.
Once introduced, the bill was immediately referred to the Senate Committee on Racing, Gaming, and Wagering, chaired by none other than Senator Addabbo himself.
A Missing Piece: Multi-State Agreement
Surprisingly, SB 2614 doesn't include provisions for New York to join a multi-jurisdictional compact, such as the Multi-State Internet Gaming Agreement (MSIGA). Given Senator Addabbo's emphasis on online poker compacts in interviews with our website and Poker Industry PRO, the absence of this language raises eyebrows, even more so since similar bills introduced by other state lawmakers this year have provisions for joining interstate compacts.
If passed, multi-state online poker could still become a reality. However, New York would likely need to pass separate legislation to authorize participation in an interstate compact, following the lead of Michigan, which did so following the passage of its online poker legislation.
Joining the Pack: Six States and Counting
New York has now joined five other states in the new year – Maryland, Virginia, Indiana, Wyoming, and Massachusetts – in introducing iGaming bills. Of these, four include provisions allowing states to enter agreements like the MSIGA. While Virginia's bill has been delayed, plans to reintroduce it next year remain intact.
The surge of online gaming bills at the start of the year is not unusual, but history shows that many struggle to advance. Still, the new year brings fresh hope that this could finally be the year an iGaming bill is successfully enacted.
A Long, Fought Battle: NY's Past Aspirations for Online Poker
New York has been attempting to establish a regulated online poker market since 2013, with several bills introduced over the past decade. Most bills have proposed a 15% tax rate for online poker. Despite nearly a dozen bills failing to advance in the past decade, advocates such as Senator Addabbo and Assemblyman J. Gary Pretlow haven't given up. They've introduced several bills, some focusing on online poker only and others on both online poker and casino gaming.
The Road Ahead for SB 2614
The prospects for SB 2614 are uncertain, with mixed reactions from lawmakers and fierce opposition from labor unions and retail casinos. While the potential for significant tax revenue and the regulation of illegal online gambling have garnered support, these challenges will need to be addressed for the bill to succeed. Keep an eye on this space for updates on SB 2614's journey through the Senate.
- Despite the absence of provisions for New York to join a multi-jurisdictional compact in SB 2614, the possible passage of multi-state online poker remains a likelihood, given the emphasis Senator Addabbo has shown on online poker compacts in interviews.
- To enhance the potential of multi-state online poker in New York, additional legislation might be needed, following the precedent set by Michigan, which passed separate legislation authorizing participation in an inter-state compact after its online poker legislation.
