New York Moves to Legalize Online Casino Gaming

New York legislators are considering a major expansion of the state’s gambling landscape with proposals to authorize online casino gaming. Senate Bill 2614, introduced by Sen. Joseph Addabbo, would allow online slots, poker, table games, and live dealer options through platforms operated by existing licensed gambling entities. Its Assembly companion, A6027, mirrors the Senate bill, limiting eligibility to commercial and tribal casinos and licensed sportsbook operators. New licenses would not be issued, keeping operations confined to preapproved participants.

Licensing and Taxation Framework

Under the bills, online casino operators would pay $2 million for a license, while independent platform providers using their own branding would face a $10 million fee. Licenses would remain valid for up to ten years, and the New York State Gaming Commission would be required to approve or reject applications within 90 days. Proponents argue that this approach allows for faster implementation compared with awarding new retail casino licenses.

The proposed tax rate for online casino revenue is set at 30.5%, lower than the 51% tax on sports betting but higher than in many other states. Revenue collected would go to the State Lottery Fund for education. The bill earmarks $11 million annually for problem gambling education and treatment, while at least $25 million per year would support worker training, responsible gaming education, and health-related programs. First-year revenue is projected at $2.5 billion, potentially rising to $4.5 billion in later years.

Addabbo framed the legislation as a means to regulate existing online gambling, saying: “Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernization of New York’s online gaming landscape.” He added, “If online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections.” The proposals include safeguards such as a $2,500 credit card deposit cap, self-exclusion tools, player-set deposit limits, and visible problem gambling resources.

Advocating Regulation to Capture Revenue

For the fourth consecutive session, Addabbo has expressed optimism that New York will legalize online casinos this year.“For every year we don’t do it, we lose about a billion dollars to New Jersey, Connecticut, Pennsylvania and the illegal market,” he said. He noted that legal iCasino offerings could help offset expected reductions in federal health care funding while also protecting minors from unregulated gambling.

Addabbo acknowledged concerns about potential cannibalization of land-based casino revenue, citing the National Association Against iGaming, but pointed to Pennsylvania and New Jersey as examples where online offerings coexist with physical casinos.

The legislation would allow casinos, video lottery terminal facilities, sportsbook operators, and tribal entities to offer iCasino platforms, creating a regulatory framework for online gaming previously unaddressed. Addabbo also expressed interest in regulating prediction market platforms like Kalshi, noting: “We have operators paying 51% — what if someone like Kalshi is not paying anything and it’s creeping into that? How do you address it? Regulate it.”

The bills are under review by the Senate Racing, Gaming, and Wagering Committee and the Assembly Racing and Wagering Committee. If approved and signed by Gov. Kathy Hochul, the proposals could take effect immediately.

Source:

"New York Bill Outlines Framework For Online Casino Gaming", realmoneyaction.com, January 13 2026