Uncertainty Looms Over iGaming Legislation in New York
In the ongoing saga of online gambling legislation, New York finds itself at a crossroads. Senator Joseph Addabbo Jr.'s proposed iGaming bill, which could potentially bring significant revenue to the state, was notably absent from Governor Kathy Hochul's 2025 budget plan. This omission casts doubt on the future of online casino gaming in the Empire State and signals that the governor may not back the bill during the 2024 legislative session.
The Financial Stakes of iGaming
The bill in question sets forth a tax rate of 30.5% on online casino revenue—a substantial figure, yet one that falls short of the 51% tax imposed on online sports betting, which secured its place in the 2022 budget. The argument for legalizing iGaming hinges on the potential financial benefits for New York, particularly in addressing budget shortfalls. Proponents contend that without legal iGaming, New York risks losing valuable income to neighboring states where such activities are legal or to illegal operations that operate outside the purview of state regulation and taxation.
Lobbyist Insights and Industry Concerns
Despite the potential for economic gain, industry lobbyist Steve Brubaker has expressed skepticism about the bill's prospects. He points out that companies interested in entering the market might face the requirement to divest certain interests before they can apply for a license, should the legislation pass. Furthermore, there is speculation that the language of last year's legal provisions may have been altered to favor specific players within the industry, highlighting how lobbyists often play a role in shaping legislation to benefit particular companies.
Brubaker's commentary reveals the intricacies of legislative processes, where bills can be crafted or amended to 'legislate market share'—a practice he suggests is commonplace and a primary reason for the existence of lobbyists. He also notes that while the outlook for the iGaming bill's passage appears bleak, it will be intriguing to observe any amendments that could pivot the focus or direction of what he describes as a "battle for control of live dealer" services.
The Legislative Battle and Its Implications
The debate over the iGaming bill is more than a mere legislative skirmish—it carries significant implications for New York's economy and the gaming industry at large. Legalizing online gambling could unlock a new revenue stream for the state, with funds that could support public education and other vital services. Senator Addabbo and Representative Pretlow have emphasized the urgency of this matter, stating, "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."
This perspective underscores the stakes involved: the potential to recapture lost revenue and redirect it toward the public good. Yet, the path forward is fraught with political maneuvering and vested interests, as evidenced by Brubaker's insights. His remarks about the previous year's legislative language suggest that entities like Evolution—or the casino companies utilizing their services—may have influenced the drafting process to secure advantageous positions for themselves.
"Seems like a very light touch for Evolution. Has me thinking that last year’s L&W language was replaced with more favorable language by Evo or by the casino companies who use them," Brubaker commented, hinting at the power dynamics at play behind the scenes of lawmaking.
Looking Ahead
As New York grapples with these complex issues, the future of online gambling remains uncertain. The iGaming bill stands as a pivotal piece of potential legislation that could reshape the state's economic landscape and redefine its gaming industry. However, with powerful forces at work both for and against its passage, only time will tell what shape the final outcome will take.
For now, stakeholders across the board—from lawmakers to industry experts, from potential operators to the public—watch closely as the story unfolds, recognizing that the decisions made in Albany will ripple throughout the state's economy and beyond.