New York State Senator Joe Addabbo has pushed for the legalization of online casinos (iCasino) for the fourth consecutive legislative session, resubmitting the SB2164 bill, with a companion bill A6027 introduced in the Assembly. As the chairman of the Senate Racing, Gaming and Wagering Committee, Addabbo is confident about the bill's passage by 2026, stating "Every year of delay costs New York about $1 billion in revenue to New Jersey, Connecticut, Pennsylvania, and the illegal market." With New York facing federal healthcare funding cuts, Addabbo believes iCasino revenue could fill this gap while also regulating the online gambling market and protecting the public, especially minors, from the risks of illegal platforms. Relevant U.S. state-level iCasino legislation and compliance standards can be referenced on the PASA official website.
Proposal Core: Fiscal Gap Filling + Public Protection Dual Demands
Addabbo's core logic in promoting the bill addresses both fiscal needs and public interest:
Compensating for fiscal losses: New York loses $1 billion annually to neighboring states and the illegal market due to the non-legalization of iCasino. With this year's federal healthcare funding reduction, iCasino revenue could be a vital supplement;
Guarding public safety: Minors not only might bypass sports betting protective measures but also frequently participate in unregulated illegal online casino games. Even though New York banned sweepstakes casinos last year, a compliant iCasino market is still needed to further strengthen protections;
Governor's support is key: Addabbo emphasizes, "All states that have legalized iCasino have done so with the push or need from the governor," and he looks forward to Governor Kathy Hochul's involvement in the discussions to help implement the bill.
Bill Details: 30.5% Tax Rate + Diverse Operator Access
This proposal clarifies the operational rules and tax framework, balancing industry development and state fiscal revenue:
Operator scope: Allows casinos, video lottery terminal facilities, online sports betting operators, and tribal groups to launch iCasino platforms;
Taxes and fees: iCasino revenue is subject to a 30.5% tax rate, with a license fee of $2 million, significantly lower than the state's 51% tax rate for sports betting;
Addressing industry concerns: Addressing concerns that "online will divert revenue from offline casinos," Addabbo cites Pennsylvania and New Jersey as examples, "These states' offline casinos are still operating normally, and online-offline joint promotions can bring more revenue to operators," provided that iCasino licenses are tied to existing offline casinos.
Positive Signal: Downstate License Settlement Clears Core Obstacles
Key issues previously hindering iCasino discussions have been resolved, creating conditions for advancing the bill:
Downstate casino licenses settled: Last year, New York issued downstate casino licenses, previously a focus of legislative sessions, now allowing concentrated efforts on discussing iCasino expansion;
Industry sees potential: The global gambling industry generally views New York as an important growth market, and Addabbo states, "It's time to view the gambling industry from a broader perspective, it's a big leap, but we're willing to roll up our sleeves and tackle the hard issues";
Experience to draw from: Fanatics Gaming and Gambling Company's Vice President of Government Affairs, Brandt Iden, who led Michigan's iCasino legislation, straightforwardly says, "Michigan took 5 years to pass the bill, many states have only pushed for two or three years, it takes time to spread awareness, but I'm optimistic about eventual success."
Extended Topic: Predictive Markets Need Regulation, Not Prohibition
Beyond iCasino, the proposal also focuses on the regulation of predictive markets:
Regarding platforms like Kalshi: These predictive markets offer services similar to sports betting but do not pay taxes, diverting revenue from legal sports betting. Last year, the New York State Gaming Commission issued a cease order to Kalshi, which then sued the state government;
Clear regulatory approach: Addabbo opposes direct prohibition, advocating "regulating platforms like Kalshi through regulatory mechanisms, rather than outright banning," questioning "legal operators need to pay 51% tax, while platforms like Kalshi pay nothing, which is clearly unfair, regulation is the solution."
Addabbo firmly believes that the legalization of iCasino "is not a matter of if, but when," meeting New York's fiscal needs and better protecting public rights, despite the challenging process, he will continue to push forward.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
