In the ongoing battle for online gambling in New York State, a new blow comes in the form of nothing at all really; Governor Kathy Hochul hasn’t even mentioned the iGaming item at all in the budget that has just been handed down for 2025.
Online gambling remains a sticky spot for the state since introducing online sports betting regulation just two years ago. While the budget delivered highlights some very important areas of need within the state, for keen iGaming enthusiasts, the gaming omission is a bit of a letdown.
A ping pong show for online gambling
While other states are opening up regulated online gambling at a rapid pace, New York appears to be caught in a ping-pong battle as those for and against keep hitting the ball back and forth – without much actually being agreed upon. While online sports betting has now been legal for over two years, other forms of online gambling are slower to be agreed upon.
On the 11th of January, Joseph Addabbo, a state senator, put forward the Senate Bill S8185, a bill related to “interactive gaming”. The bill is currently sitting with the Senate Committee on Racing, Gaming, and Wagering. The bill must be passed by both the assembly and senate committees, then presented to the floor of both the assembly and senate, then passed by both the assembly and senate, before being delivered to the governor and then signed by the governor as a final step.
The Senator has previously introduced a similar bill in early 2023, although that bill stumbled early also and failed. The new bill sets out gambling provisions similar to those already implemented in other states; that the state’s land-based casinos may apply for online gambling licenses, as well as racetracks for sports betting, and the three native tribes of New York: St. Regis Mohawk Tribe, Seneca Nation of Indians and the Oneida Indian Nation of New York. The bill has a detailed description of how the services will be licensed and run, plus provisions for an online lottery.
Online gambling not included in Hochul’s budget
January 16th saw Kathy Hochul present the 2024-2025 budget for New York State. The budget takes into account $233 billion, slightly more than the budget for the previous year. Within the budget, there were a few standout projects including high crimes, mental health, housing affordability, Medicaid spend, prenatal leave, school aid, attention on the migrant crisis and creating the Empire Artificial Intelligence Consortium.
Notably absent within the budget was any mention of anything to do with online gambling. What that means for all involved is that the State doesn’t see that online gambling will be brought into effect or passed through in the houses at all during the new financial year.
According to the managing partner at B Global Advisors, Brendan Bussmann, the decision to omit iGaming from the budget can have major repercussions for the online casino in the future. Thus, they will certainly have their work cut out for them.
While at present sports betting is the only type of gambling legalized in the state, if in the future it will expand to online casino offerings, punters will be able to take advantage of many exclusive no deposit bonus codes amongst a selection of other promotional offers.
iGaming a 2026 FY priority?
Of course, just because iGaming is not in the current year’s budget does not mean that it will not be in the next years. For many observers, it is undeniable that online gambling will be introduced within the State at some point in time, it’s just about getting the particulars and timing right.
Sports betting has already generated a huge amount of money for the state in the two short years that it has been legalized. In 2023 alone, the State accumulated $862 million in tax revenues from mobile sports betting, among the $1.55 billion that is collected from taxes on bets within the state. This type of funding can help support more of the community, and the Governor says currently most of this goes back into education for the state.
Online gambling is already rife throughout the world, regardless of the legality of online gambling within the region. Thanks to offshore operators providing services like online casinos, lotteries, and fantasy sports, gamblers are able to access sites and apps from out of the country with just a few quick clicks or taps. This is why many countries and states are now opening up online gambling more widely. If the service already exists, and players are already playing, shouldn’t the State be getting some of the benefits from the operations? With tax rates as high as 30% of the bet total, money can be returned to the state with each bet made.
