New York is poised to make its first foray into the world of legalized iGaming, following the unprecedented success of the launch of online sports betting in the state. This has been prompted by Senator Joeseph Addabbo, who recently proposed a new bill to the Senate. If the bill or SB 8412 passes, it could lead to online casinos having exceptionally large numbers of legal customers – something that could greatly benefit the state as well as casino owners.
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What will the NY senate’s consideration of legalizing online sports betting, and casinos mean for the state? The bill is great news for the online gambling industry and iGaming enthusiasts but is not guaranteed to pass immediately. While online casinos are still a relatively new concept in America, New York legislators will benefit from the experience of other states (such as New Jersey, West Virginia, and Pennsylvania) when it comes to legalizing iGaming and online sports betting. This is likely to help New York pass this bill or a similar one without experiencing a significant stall, as happened in the state of Illinois. While it is possible that New York’s recent sports betting success might leave some potential customers feeling overwhelmed by the sudden influx of online gambling options, it is a good sign that the vast market offered by New York can allow plenty of benefits to the state, gambling industry, and local economy.
Similar to other states, the New York bill limits direct access to the market to both commercial and tribal gaming operators of brick-and-mortar casinos. Each of these casinos can then allow up to 2 outside companies to indirectly access the market by going through them. Although this seems to be potentially limiting, with over 12 land-based casinos operators in question, there will be room at the New York iGaming table for all of the largest operators in the states and many of the smaller ones.
In contrast to New York’s online sports betting’s hefty tax rate of 51%, online casinos would be taxed at a much more modest 25%. Although licenses will last 10 years, related payments will be expensive at first. The fee for the land-based businesses will be a modest $2 million. However, online businesses that want to use their own branding will be expected to pay a whopping extra $10 million. The majority of the tax collected by New York internet casinos, per the law, would go to the State Lottery Fund for Education Aid. + $11 million yearly for gambling addiction, education, and counseling. As of 2021, the online casino industries in New Jersey, Pennsylvania, and Michigan each generated more than $1 billion in gross revenue. Considering populations and the 25% tax rate, New York may certainly anticipate raising at least $400 million.
Finally, while the recent bill doesn’t directly talk about online poker, the bill’s language implies that competition between players, not just dealers, would be legally permissible. This will certainly excite many online casino enthusiasts!