New York moves forward with online gambling push driven by growing competition with New Jersey  

New York is making another attempt to legalize online gambling, with lawmakers confident that the Empire State could become a national leader in the expanding industry. Senator Joseph Addabbo has introduced a bill seeking to authorize and regulate online casino gaming, marking his third attempt to push legislation through. 

If approved, the measure could generate considerable tax revenue for the state, supporters say. Despite potential competition, experts believe New Jersey’s online gambling market, which generated $2.4 billion last year, is unlikely to face significant disruption.

The bill, which proposes a 30.5% tax rate on online gaming revenue, more than double New Jersey's rate, asserts that New York could quickly surpass other states in terms of revenue generation. 

Addabbo’s proposal also includes the regulation of online lottery sales and games, as well as stringent measures to curb unregulated gambling operators. The legislation would limit online gambling to individuals physically within New York state borders, a common restriction adopted by other states with legalized online gaming.  

Jane Bokunewicz, director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, noted that past experiences with Pennsylvania’s entry into the online gambling space had little impact on New Jersey's market. She stated that the convenience of internet gaming means it primarily serves local residents rather than those crossing state lines to place bets.  

New York's aggressive expansion into gambling is not limited to online platforms. The state is preparing to award up to three new casino licenses, with plans to establish physical venues in or near New York City. Industry observers suggest that these developments could pose a greater challenge to Atlantic City's casinos in the coming years, drawing away visitors and potentially reshaping the regional landscape.  

Senator Addabbo’s online gambling bill also outlines specific provisions to support the gaming workforce, earmarking $25 million annually for casino employee training and development. It also mandates that online gambling servers be housed within state-licensed casinos, ensuring a level of regulatory oversight. 

Additionally, the bill proposes a three-year exclusion period for unregulated operators currently offering games within New York, targeting offshore gambling sites and sweepstakes-based platforms that operate outside state laws.  

In a recent statement, Addabbo highlighted the growing concern surrounding sweepstakes casinos, which offer free-play options with the potential for cash prizes through in-game purchases. He urged lawmakers to either incorporate these platforms into the regulatory framework or ban them altogether, citing the risks associated with unregulated gambling activities.  

“To close this loophole, I will work to ban or incorporate sweepstakes casinos in the state, akin to current laws in Michigan, Idaho, and Washington,” Addabbo stated. “By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents.”  

Despite Addabbo’s efforts, previous attempts to pass similar legislation have failed to gain significant traction. A recent survey revealed that less than half of New Yorkers support the expansion of online gambling, presenting a challenge for lawmakers looking to push the initiative forward. However, supporters argue that a regulated iGaming framework could provide a safe and reliable alternative for residents while boosting state revenues.  

Governor Kathy Hochul’s office has indicated that the proposed legislation will be reviewed, but it remains to be seen whether the bill will advance further than in previous years.