The State of iGaming Legislation in New York
In the evolving landscape of online gambling, New York finds itself at a crossroads. The latest development comes with Senator Joseph Addabbo Jr.'s proposed iGaming bill, which has not been included in Governor Kathy Hochul's executive budget for 2025. This exclusion casts doubt on the future of online casino gaming in the Empire State, particularly within the 2024 legislative session.
The bill in question puts forth a tax rate of 30.5% on online casino revenue—a significant figure, though still shy of the precedent set by online sports betting, which was incorporated into the state budget in 2022 with a hefty 51% tax rate. While the taxation on sports betting has contributed to the state's coffers, proponents of iGaming argue that its legalization could further bolster state profits and mitigate budgetary shortfalls.
There is an underlying concern that without legalizing iGaming, New York might continue to lose potential revenue to neighboring states where such activities are permitted, or worse, to illegal operations. The financial implications are substantial, as funds that could be funneled into public services like education are instead being diverted elsewhere.
Industry Perspectives and Lobbyist Influence
Despite the potential benefits, skepticism about the bill's passage remains. Industry lobbyist Steve Brubaker has expressed doubts, citing the complexities of the legislative process and the influence of various stakeholders. His insights suggest that companies interested in securing a license may face the requirement to divest certain interests, a provision that could reshape the competitive landscape of the industry.
Brubaker also points out that legislative language from the previous year may have been altered in ways that favor particular players within the industry. He alludes to Evolution (Evo), a company providing live dealer games, hinting at the possibility that changes were made to benefit either Evo directly or the casino companies that utilize their services. This allegation underscores the opaque nature of lobbying efforts and how they can shape legislation to benefit specific entities.
Lobbyists play a critical role in this arena, often influencing bills to legislate market share, ensuring their clients gain a competitive edge. Brubaker's comments reflect the widespread belief that lobbyists are instrumental in directing the legislative narrative to serve the interests of their clients.
The Uncertain Future of iGaming in New York
The path forward for online gambling in New York is fraught with uncertainty. With Governor Hochul's current stance and the absence of the iGaming bill from the 2025 budget, the industry faces an uphill battle. However, the conversation around the bill is far from over. As Brubaker notes, it will be intriguing to observe any amendments that might alter the trajectory of the bill or the ongoing struggle for control over live dealer gaming—a segment of the industry that is particularly contentious and lucrative.
Senators Addabbo and Representative Pretlow have emphasized the urgency of the situation, pointing to the fiscal distress faced by the state. They argue that it is untenable to allow potential revenue to slip through New York's fingers when it could significantly contribute to public services. Their statement reflects a broader recognition of the need for strategic financial management, especially in times of economic strain.
The outcome of the iGaming bill carries considerable weight for New York's economy and the gaming industry at large. As legislators, industry stakeholders, and lobbyists navigate the complex interplay of interests, the stakes remain high. The decisions made now will shape the regulatory framework and market dynamics for years to come, determining whether New York can capitalize on the burgeoning digital gambling market or if it will continue to watch potential earnings cross state lines.
In conclusion, while the iGaming bill's future is currently unclear, what is evident is the significant impact its passage—or failure—will have on New York's economic landscape and the gaming sector. Stakeholders and observers alike await further developments with bated breath, as the state grapples with the multifaceted implications of legalizing online casino gaming.