The Fate of iGaming in New York's Legislative Hands
In the ongoing saga of online gambling legislation, a significant development has emerged from the Empire State. Senator Joseph Addabbo Jr.'s ambitious iGaming bill, which seeks to legalize and regulate online casino games, has notably been omitted from Governor Kathy Hochul's executive budget for 2025. This exclusion casts doubt on the future of digital gaming in New York, as well as the potential financial benefits it could bring to the state.
Understanding the Proposed iGaming Bill
The proposed legislation comes with a substantial 30.5% tax rate on online casino revenues, a figure that has raised eyebrows in various quarters. The bill's absence from the governor's budget suggests that Governor Hochul may not throw her support behind the initiative during the 2024 legislative session. This is despite the fact that online sports betting was successfully incorporated into the 2022 budget at an even higher tax rate of 51%, setting a precedent for regulated online gambling in the state.
Advocates for the bill argue that legalizing iGaming could be a lucrative move for New York, potentially generating significant revenue to alleviate budget deficits. Moreover, proponents contend that without a regulated iGaming framework, New York stands to lose money to neighboring states where such activities are legal, or worse, to illegal gambling operations.
Industry Skepticism and Lobbyist Influence
Despite these arguments, industry lobbyist Steve Brubaker has expressed skepticism about the bill's chances of passing. He points out that companies interested in securing a license might face the requirement to divest certain interests, a stipulation that could complicate the application process. Furthermore, there is speculation that last year's legal language, which may have inadvertently favored particular industry players, could be modified to provide a more level playing field—or to tip the scales in favor of other entities.
Lobbyists' role in shaping legislation is no secret, and Brubaker acknowledges this reality candidly, noting that bills often legislate market share to benefit specific companies—a primary reason why lobbyists exist. In his view, the battle for control of live dealer games, a crucial component of the iGaming ecosystem, is particularly contentious.
Brubaker also alludes to the possibility that Evolution (Evo), a key player in the live dealer segment, might have influenced the drafting of legal provisions to their advantage, or alternatively, that casino companies utilizing Evo's services have done so. His statement implies that last year's legislative wording, which may have given Evolution a "light touch," could see revisions to accommodate different interests.
The Economic Impact and Uncertain Future
The stakes are high, as the outcome of the iGaming bill will have significant implications for New York's economy and its gaming industry. Senator Addabbo, along with Representative Pretlow, highlights the fiscal urgency in a joint statement, stressing the importance of capturing funds that currently escape to other states or fall into the hands of disreputable companies. They emphasize that these funds could instead support public education and other vital services.
However, the future of online gambling in New York remains shrouded in uncertainty. With the governor's apparent lack of enthusiasm for the bill and the complex interplay of industry interests, the path forward is unclear. As Brubaker points out, while the bill's passage seems unlikely, any amendments made during the legislative process could alter its trajectory significantly, reshaping the battle for dominance in the burgeoning sector of live dealer games.
In conclusion, as the 2024 legislative session unfolds, all eyes will be on Albany to see how lawmakers navigate the contentious issue of iGaming. Whether they will embrace the potential economic windfall that regulated online gambling promises or yield to the complexities and competing interests at play is a question only time will answer. For now, the future of virtual casinos in New York hangs in the balance, with far-reaching consequences for the state's fiscal health and the integrity of its gaming industry.