An Overview of the Gambling Legislation in New York State

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Are you feeling confused about the legislation surrounding gambling in New York State? If so, then read our brief overview for more information and clarity.

Hudson Valley and Catskill are both encompassed by New York, the fourth most populous state in North America and home to the iconic metropolis of New York City. Like most other states in New England, New York has stringent measures in place to regulate the region’s gambling industry. It can be difficult to muddle through all the rules and regulations for different gambling activities (of which there are many), so we thought we would go about clarifying them in our article today. If you want to further your understanding of the legal framework surrounding online and land-based gaming in New York State, then you should keep reading this overview to find out more information.

State-Run Lotteries

In New York, residents are able to participate in state-run lotteries. These are, in fact, a popular pastime among residents. You can purchase a lottery ticket from your local retailer for your chance to win from the prize pool, including a big jackpot. These can sometimes be worth hundreds of thousands of dollars. Lotteries have been legalized in New York State because they are quite easy to regulate, the chances of them causing financial harm to participants are low, and – as they are state-run – the money goes towards a huge variety of projects, including charitable causes and public sector funding. There is also quite a culture that surrounds the lottery.

Online Gambling

The online gambling industry has grown exponentially over the past few years. Different countries across the globe have introduced it into their gaming legislation. States in North America have slowly started to open up regulated online gambling markets too. However, New York State doesn’t have plans to do this anytime soon. With the closest legal betting state being Pennsylvania, residents have to travel across the state border if they want to participate in online gambling activities. These regulations extend to everything from sports betting and slot machines to live poker and online bingo. The only thing that residents in New York State are allowed to do is off-track betting on horses through a licensed online operator.

Interestingly, New York had the biggest online gambling bust in the world a few years ago. Three of the largest US online poker websites in the country were shut down on April 15th, 2011, in a movement that was called ‘Black Friday’ and cost the US Government $547 million in fines. So, online gambling most definitely isn’t legal within the state. However, penalties do mainly seem to be aimed at operators as opposed to betting residents in New York. This means the state’s government isn’t interested in arresting individuals who are placing online bets, but those that are trying to offer residents online games which contravene the law as it stands.

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Pari-Mutuel Betting

Pari-mutuel (which is French for mutual betting) is a gambling system that involves pooling together all bets of a particular type. This funding pool will then have tax and house fees deducted from it, before it is shared among the winning participants. Pari-mutuel betting is frequently used for things like greyhound racing, horse racing, jai alai, and lotteries, among other things. In New York State, it is currently legal to participate in pari-mutuel betting for horse racing. People can place a wager on the outcome of these races, choosing between horses and guessing which position they will come in. This recreational activity is popular among residents of New York State, as they debate and discuss their favorite racers.

Land-Based Casinos

New York State is slightly more flexible when it comes to land-based casinos, though regulations are still very much in place. There are currently 16 federally approved Native American casinos in New York, including Lakeside Entertainment, the Akwesasne Mohawk Casino, and Batavia Downs Casino. Native American gambling is permitted in the United States because operations usually take place on Indian reservations, which have tribal sovereignty. Resultantly, state governments have very limited authority and cannot ban gaming there. Some of these establishments are small ‘racinos’ with video poker and slot games. Others are Vegas-style with thousands of slot machines, video poker games, gaming floors, and gambling tables with live dealers. In addition to the Native American casinos, voters in New York State also agreed to having seven resort casinos built in the region. This decision was made back in 2013.

Bingo and Lottery

Lottery games in New York do not need to be solely operated by the state. They can also be run as funding for charitable causes, non-profit organizations, and religious groups. This regulation also applies to bingo games. Once again, as these gambling activities are low-risk and almost entirely used for recreational or altruistic purposes, the New York State government has deemed them appropriate for its residents. Of course, charitable organizations must first seek permission from the state before they can offer raffles, bingo games, or lotteries to residents for a special event.

Sports Betting

Sports betting is a massive deal across the world. It is a huge part of sporting culture. Passionate fans like to engage themselves more in the events by placing bets on all their favorite teams. For a long time, sports betting has been illegal in New York State. However, these regulations have started to change very recently. In April 2021, New York Governor Andrew Cuomo signed a budget legislation for 2022 which included a plan to legalize online sports betting in the state. Though this change has yet to be properly implemented, experts have estimated that residents of New York will first be able to place their bets in February 2022. Of course, players can only participate if they attend a land-based or online site that has been fully licensed. People are excited because this means they will also be able to participate in mobile sports betting. However, some residents and authority figures are concerned that this decision could lead to a rise in problem gambling in the state.

We hope that you have found this overview of the gambling industry in New York State informative and helpful. As legislation continues to be altered, it will be interesting to see what happens next.




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