New York Embarks on Online Poker Legalization

2019 is shaping up to be a turning point for New York gaming.

Not only is sports betting regulation getting close at hand, but the land-based industry is on the cusp of being substantially refurbished as well.

The planned Las Vegas Sands NY property could receive the go-ahead in a matter of months as more and more operators jump on the regulated sports wagering bandwagon in what could potentially be US' watershed market.

In the midst of all that, along comes another bit of fair news: Representative, Gary Pretlow Sr., aims to legalize online poker in New York; and he already has a bill to make it happen!

A Matter of Classification

Bill A04924's key provision is trying to classify this popular card game as a game of skill – not luck. The first draft of this bill was already put forward to the New York Committee on Racing and Wagering...

...and, as this regulatory body is considering its worth, the debate still rages on about whether it should be specified if poker's availability in NY will be limited to desktop machines or will include mobile devices too.

There will have to be a new round of licensing, of course – a formality that would be delegated to the New York State Gaming Commission under the condition that only those operators who already have a video lottery license can apply for online poker.

License's Cost

Applicants that already hold a Class III gaming facility license will also be taken into consideration by The Commission. Applicants that receive licenses would be allowed to form partnerships with a third-party provider of online poker games.

From the moment the legislation comes into effect (IF it comes into effect), it would take at least 180 days for the first licenses to be issued.

Interested operators would need to cash out $10 million for licensing expenses. They would be good for ten years, when a renewal process comes to order.

Thus, gaming activities permitted and gaming gross revenue generated would be taxed at a 15% rate – beside of which...

...any penalties exerted by The Commission would be put into the NY state lottery fund.

Protection is Not to be Neglected

With online poker comes great responsibility: the state regulator will not look favorably upon licensees that do not have relevant safeguards displayed visibly in order to protect customers from gambling-related harm.

Such safety measures include an age verification system and geolocation technology that would forbid users from accessing operator's services from any other location other than New York state territory.

On the subject of proposed sports betting, it seems like online and mobile versions of it are not even being considered at the present moment: the regulation for this branch of gaming indicates that placing sports wagers will be limited to in-person, in-venue form.

Source:

“New York to consider online poker bill”, igamingbusiness.com, February 8, 2019.