New York Senator believes igaming regulation will be a necessity rather than a desire

New York Senator Joseph Addabbo Jr. has claimed the trigger point for igaming regulation across the US will be a need for states to cover budget deficits, rather than an explicit desire to bring legalized online casino to market.

Speaking at NEXT: New York yesterday, March 7, Addabbo said the only way for New York to regulate igaming this year was to follow this train of thought.

Senator Addabbo’s igaming bill, filed in January, included terms such as a 30.5% tax rate on GGR and a $2m license fee, with the licenses lasting for a decade. 

The bill was hit with a blow a few days after being filed, as gambling legalization was not included in Governor Kathy Hochul’s executive budget for 2025. 

Addabbo remarked: “If the Governor sees a $9bn deficit next or the possibility of cuts to healthcare, then we can use the igaming money if we do it this year towards that. 

“The money, which is roughly in the vicinity of $800m or so, could be used for something like healthcare. Previously, gaming money had been used for education but, because it’s a new product, you could use the money for something else, like healthcare or transportation.”

Addabbo added that igaming regulation needs to be “governor-driven,” and that Governor Hochul needs to get all parties, including unions and legislators, to sit around the table and discuss the terms of legislation. 

He commented: “It might not be that they want to do igaming in New York, but it might be a need like when Covid-19 brought mobile sports betting for New York because of the fiscal impact.”

The New York Senator added that he believes there isn’t a “hurdle in front of us that we cannot overcome” when it comes to igaming regulation. 

However, there has been reported opposition from land-based casino workers at Resorts World New York City Casino, with unions arguing that that legalizing online casinos would “hurt” the brick-and-mortar workers and benefit a small number of operators. 

Addabbo retorted: “I understand the issue. I acknowledged the issue, and we put it in the bill that there is a $25m fund every year to protect brick-and-mortar workers. We have tried to address the issue but we can only move forward if there is a willingness on the other side to discuss and negotiate.”

This is not the first time Addabbo has tried to pass igaming legislation in the Empire State. Last year, alongside Assemblyman J. Gary Pretlow, the pair pushed twin bills at both Assembly and Senate level but neither bill managed to clear. 

If the bill passes, New York will join seven other states in the shape of New Jersey, Pennsylvania, Connecticut, Delaware, Michigan, West Virginia, and Rhode Island in offering a legalized online casino market.

Rhode Island became the latest state to go live, opening on March 5, with Bally’s operating an effective monopoly in the Ocean State.