Push For New York iGaming Quashed By Gov. Kathy Hochul Budget

Attempts by New York legislators to legalize online casinos in the Empire State in 2024 looks as though it will have to wait, perhaps another year for consideration.

On Tuesday, just a week after Sen. Joseph Addabbo signaled his intention to push his iGaming bill SB 185, Gov. Kathy Hochul failed to include potential iGaming tax revenue in her Full Year 2025 New York State Executive Budget. It all but indicates a sad truth that iGaming likely won’t be coming to New York this year.

Addabbo himself has indicated that his push for an online casino expansion in New York would be an uphill climb without the support of his Governor. Hochul's omission of iGaming revenues in her latest executive budget certainly dampens efforts to legalize, if not kills them all together for the time being.

What was proposed?

Sen. Addabbo’s attempts to legalize online casinos isn't a new one for the New York sports betting market. He, along with a handful of other New York legislators, have made pushes in the past to bring legal online casinos to his state but has failed.

This time, SB 185 was introduced in an attempt to create an amendment to the New York sports betting law to allow current mobile sportsbooks in the Empire State, the state's tribal and commercial casinos, and companies in charge of video lottery terminals to expand their offerings to include online casino options like casinos games, slots, and online poker.

It would legalize “any internet-based version or substantial equivalent of a table game, slot machine ... or any other game as set forth and approved by the commission.”

Under the proposed bill, online casinos would be subject to a $2 million licensing fee for a 10-year license and revenues would be taxes at a state-friendly 30.5%.

SB 185, however, isn’t likely to move forward with Tuesday’s budget announcement.

What was included in Hochul's budget?

Governor Hochul did make a move to put a bigger focus on horse racing betting opportunities for New York bettors. Her budget would allow the extension of  “Pari-Mutuel Tax Rates and Simulcast Provisions for One Year.” It also mandates an extension to simulcast opportunities for state providers, as well as the creation of a flexible environment for off-track betting facilities in the state. 

Parimutuels will be granted a chance to enhance their spending during the upcoming year. Her budget extends “Authorized Use of Capital Funds by a Certain Off-Track Betting Corporation for One Year.” Off-track betting facilities will have an opportunity to spend up to $1 million on operational expenses under Hochul's newest budgetary plans.

What now?

Some New York legislators had hoped to add iGaming as a way to generate a new tax revenue source for needy state and local coffers. 

With Hochul apparently not interested in moving forward with that, and with Sen. Addabbo vowing to pump the brakes on his initiative because of his Governor's reluctance to move forward, it looks as though iGaming and online casinos will have to wait at least another year before possibly becoming a reality in the Empire State.

This despite neighbors New Jersey and Connecticut benefiting financially from such platforms in their state.

So, it is "wait and see" again on iGaming for New York State. It looks as though 2025 is the earliest residents of the Empire State will get another crack at online casino legalization. But even that is up in the air.

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