New York Senator Joe Addabbo has not given up on the idea of having regulated iGaming across the Empire State. Recently, the lawmaker submitted legislation that would legalise online casino games in the state. This is the third attempt from Addabbo to decriminalise it.
Besides being a lawmaker, Addabbo is also the head of the New York State’s Senate Racing, Gaming, and Wagering Committee. He recently filed Bill S2614, which is similar to his iGaming bill from last year and would legalise the offering of regulated online casino games.
At the moment, the Empire State does not allow online gambling, except for mobile sports betting. The state introduced the offering at the start of 2022, quickly becoming a leader in online sports wagers. Since then Addabbo has been a massive proponent of an iGaming expansion.
Details on Bill S2614
If passed by the New York Legislature, Bill S2614 would legalize and regulate an online gaming market, which will feature the following:
- Tax Rate: the bill suggests a hefty 30% tax on digital casino revenue. This would be more than double what the neighbouring New Jersey taxes.
- Limited Operator Model: similar to other states, the bill will limit the number of operators to those who are already operating land-based casinos in New York.
- Portion Goes to Online Gambling Workers: approximately US$25 million will be used to support the digital gaming workforce.
- Ban for Illegal Sites: the bill would ban unregulated, offshore sites for three years.
- Inclusion of Online Lottery: the legislation aims to include online lottery, thus dealing with unlawful gambling
- Locally Based Servers: Like mobile sports betting, servers for online gambling will be located in state-licensed gaming properties.
Addabbo Targets Sweepstakes Casinos
With the launch of online casinos, Addabbo would also aim to take measures against the rising in popularity sweepstakes casinos. This will be done through regulation or banning, explained Addabbo on a recent podcast. He shared that there is a loophole for these sites and that they appeal to young adults.
“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators. Many sweepstakes' operators are located offshore, making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” said Addabbo.
The Senator further elaborated that these sweepstakes platforms allow users to purchase their virtual credits and wager them with the hope of winning and redeeming them for cash. In his words, playing a game with cash to win more money is basically gambling, and that should be regulated.
The said sweepstakes sites offer free-to-play games of chance to try and lure bettors in. The idea is to attract players who will purchase their coins and swap them for sweepstake tokens. Then, the players can participate in various sweepstakes for the chance to win rewards Still, the sweepstakes have no real value and cannot be purchased directly.
With the loophole, these sweepstakes options are practically legal in many states, including New York. They offer games of chance like slots for free, with the promise of buying coins that can later unlock cash rewards.
What’s the Plan?
Addabbo’s plan to deal with the sites would be to ban or legalize sweepstakes in the Empire States, which was already done in states like Washington, Idaho, and Michigan. They haw state laws that regulate sweepstakes, offering them in a safe gambling environment with various protections in place.
The Senator vowed that by addressing sweepstake sites and introducing regulated online gambling, the state will further demonstrate its commitment to protecting local consumers. He added that dealing with gambling addiction while providing more tax revenue will benefit all New Yorkers.
“Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins.”
Lastly, he urged his fellow colleagues and Governor Kathy Hochul to consider taking action against sweepstakes platforms and entertain the benefits of an iGaming market. In his opinion, the launch will provide sanctioned services in a popular and rapidly expanding industry.
What’s Next for Bill S2614
Bill S2614 has been allocated to the New York Senate Racing, Gaming, and Wagering Committee. The final verdict on whether it will be passed as law will be revealed in the coming months. Meanwhile, there are signs that it might gain just enough momentum. If enacted, the legislation would legalise iGaming in the Empire State.
States like Connecticut, Pennsylvania, and New Jersey have already introduced such an online market and are now reaping the award. Considering the success of New York’s mobile sports betting initiative, the iGaming expansion is also destined to be a success.
Problem Gambling Increases, Warns Expert
Given the recent online gaming expansion in the Empire State, some experts are worried about an increase in problem gambling. It was recently reported that in 2024 alone, New Yorkers lost over US$2 billion in games of chance.
Jim Maney, Executive Director of the New York Council on Problem Gambling praised the New York State Gambling Commission on its efforts to raise awareness on the issue. However, he believes that more can and should be done on larger proportions.
