The Future of iGaming in New York Hangs in the Balance
As the Empire State grapples with its financial forecast, a significant piece of legislation hangs in the balance. Senator Joseph Addabbo Jr.'s proposed iGaming bill, which could potentially boost state revenue through online casino taxation, was notably absent from Governor Kathy Hochul's 2025 budget plan.
The bill, which calls for a 30.5% tax on online casino revenue, is facing an uncertain future as Governor Hochul appears hesitant to throw her support behind it during the 2024 legislative session. This comes despite the fact that online sports betting, taxed at an even higher rate of 51%, successfully made its way into the state budget in 2022.
Proponents of the iGaming bill argue that legalizing online gambling could be a boon for New York, providing much-needed funds that could help address budget shortfalls. They contend that without the legalization of iGaming, New York stands to lose substantial revenue to neighboring states where such activities are legal, or worse, to illegal gambling operations.
Industry Perspectives and Skepticism
However, not everyone shares this optimistic outlook. Industry lobbyist Steve Brubaker has expressed doubts about the bill's chances of passing. He suggests that the legislative language may have been altered to favor specific players within the industry, a move that wouldn't be out of character in a landscape often shaped by lobbyists aiming to legislate market share for their clients.
Brubaker's insights also point to potential changes that companies might face should the bill pass. There could be a requirement for companies to divest certain interests before they would be eligible to apply for an iGaming license—a stipulation that could significantly reshape the competitive landscape.
Additionally, Brubaker hints at the possibility that last year's legal language, which could have disadvantaged Evolution Gaming (referred to as "Evo"), may have been replaced with more favorable terms. This could imply that either Evolution itself or the casino companies that utilize its services had a hand in influencing the bill's amendments.
Lobbyists and Legislation
The role of lobbyists in shaping legislation cannot be overstated, as Brubaker candidly points out. It's a common practice for bills to be crafted in ways that ensure certain companies gain a larger slice of the market pie. The iGaming bill appears to be no exception, with ongoing debates over who will control the lucrative live dealer segment of the industry.
"At a time of fiscal distress for our state, we cannot continue to allow hundreds of millions of dollars to be funneiled into neighboring states or into the pockets of disreputable companies—particularly when those funds could be used to further bolster funding for public schools or other worthy services," assert Sen. Addabbo and Rep. Pretlow, highlighting the potential benefits of passing the iGaming bill.
Brubaker's skepticism extends to the legislative process itself, where he predicts that while the bill may not pass in its current form, it will likely undergo amendments that could alter its trajectory. These modifications could be pivotal in determining who ultimately gains control of the live dealer sector—a battle that seems to be at the heart of the iGaming controversy.
An Uncertain Horizon for Online Gambling
The stakes are high, and the outcome of the iGaming bill will undoubtedly have a profound impact on New York's economy and gaming industry. With so much money and influence in play, the path forward is fraught with political maneuvering and vested interests.
As the debate continues, the future of online gambling in New York remains shrouded in uncertainty. Stakeholders across the board will be watching closely as the 2024 legislative session unfolds, ready to adapt to whatever decisions come down the pipeline. For now, the fate of iGaming in New York is still very much up in the air, with far-reaching implications for the state's fiscal health and regulatory environment.