New York Legislature Introduces Bill to Legalize Online Casino and Internet Lottery

New York state senator Joseph Addabbo has put forward a new bill, Senate Bill S8185, seeking to legalize online casino and internet lottery in New York. The bill was submitted to the New York Senate Racing, Gaming, and Wagering Committee on January 11th.

This is not Addabbo’s first attempt to establish legal online gambling in New York. He previously introduced a bill, S4856, in early 2023, which had similar intentions but failed to pass. The latest bill is a renewed effort to bring online gambling to the Empire State.

Key measures outlined in SB S8185 include the availability of three interactive gaming licenses. Eligible entities for these licenses include online sports betting operators, recognized tribes in New York, established video lottery terminal parlors, and land-based casinos in the state.

The bill also details the licensing process, with the New York State Gaming Commission overseeing the allocation of licenses through a bidding process. It also sets a one-time licensing fee of $2.0m for casinos and operators, with an additional $1.0m fee for independent contractors providing an igaming platform.

In addition to online casino, the bill proposes rules for internet lottery, allowing consumers to participate in joint, multi-jurisdiction, and out-of-state lotteries online via mobile or desktop devices. The New York State Division of Lottery would regulate online ticket sales if the bill becomes law.

A proposed tax rate of 31.5% on gross gaming revenue generated from online gambling would be implemented, with a portion of the tax revenue allocated to fund gambling addiction treatment. The bill also includes measures to protect users from gambling-related harm, such as self-exclusion tools and age restrictions for online gambling.

The introduction of the bill comes on the heels of New York’s successful launch of legal internet sports betting in 2022. The state has seen tremendous revenue from online sports betting, with a record $188.3m in December 2023 and a total handle of $2.11bn, signifying the potential for a thriving online gambling market in New York.

Overall, the bill seeks to expand New York’s gambling market and establish the legal framework for online casino and lottery, replicating the success seen in internet sports betting.

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