New York Governor Kathy Hochul has left out igaming from her 2025 budget, dealing a blow to the prospects of online gambling in the state. New York state senator Joseph Addabbo’s revised igaming bill, Senate Bill S8185, was left out of the budget, causing concern among those who were hopeful for the expansion of online gaming in the state.
The exclusion of igaming from the budget means that Addabbo’s attempt to introduce online gaming in New York, which included the inclusion of ilottery, has hit a roadblock. Hochul’s 2025 budget totals $233 billion, which is an estimated $1 billion increase from the previous year, achieved without raising income taxes. However, the exclusion of igaming from the budget is a significant setback.
While igaming was not included in the budget, Hochul did include a provision to extend various betting and breeding law provisions that were set to expire, extending them for one year. Brendan Bussmann, managing partner at B Global Advisors, expressed concern over the exclusion of igaming from the budget, stating that it is a critical blow to the future of online casino gambling in New York.
Bussmann highlighted the success of the state’s current sports betting market, which consistently brings in high revenue for the state due to a tax rate of 51% on sports betting. In comparison, Addabbo’s latest bill proposed a tax rate of 31.5% on gross gaming revenue from igaming. Despite the success of sports betting in New York, Bussmann emphasized the need for the state to embrace igaming, as surrounding states like Pennsylvania, Connecticut, and New Jersey have all implemented sports betting and online gaming, making New York a highly desirable market for igaming companies.
Overall, the exclusion of igaming from the 2025 budget has raised concerns among industry experts about the future of online gambling in New York, and the potential economic opportunities that could be missed out on by not embracing this form of gambling.