The 4th-most populous state in America environs the northeastern region, bordering Canada to the northwest and the north, Vermont, Massachusetts, Connecticut, and Rhode Island to the east, New Jersey to the south, and Pennsylvania to the east.
The cradle of the earliest Dutch settlers in the U.S. and one of the original Thirteen Colonies — admitted to the Union in 1788 — represents the sliver of the whole nation throughout myriad exciting facts.
First, there’s New York City, a metropolis deemed the financial, trade, cultural, and media capital of the world and the most populous and most linguistically diverse city in North America. In contrast, Albany, the state capital, has 1/80 of the population of NYC.
The Woodstock Music Festival, a seminal event in 1969, took place on a dairy farm in Bethel, while New York also hosted two Winter Olympic Games in Lake Placid, making it the only city in the U.S. to do so. The state is the second safest in the country to drive, after Massachusetts, but at the same time, New Yorkers bite ten times more people than sharks do annually on the global level.
The state is home to the smallest church in the world, in Oneida, large enough to host two people, and many inventions which shaped the world as we know it: Toilet paper, chewing gum, mail chutes, Jell-O, marshmallows, French’s Mustard, baby shoes, gold teeth.
New York is the birthplace of the longest-running newspaper in the nation — The New York Post, established by Alexander Hamilton in 1803 — as well as Denzel Washington, both Theodore and Franklin Delano plus Eleanor Roosevelt, Michael Jordan, Walt Whitman, Herman Melville, Barbara Streisand, the Marx Brothers, and L. Frank Baum, author of The Wizard of Oz.
Not surprisingly…
…the 27th-largest state in America has one of the strongest economies in the country.
Synonymous to Wall Street, media conglomerates, Silicon Alley, Tech Valley, creative industries, and real estate, New York is well-known for business services, exports, education, transportation, agriculture (grape, cabbage, potatoes, dairy products), wine production, insurance, and tourism.
Among others, these verticals created $1.73 trillion gross domestic product in 2019, equal to 8.1 percent of the national annual GDP, trailing only California and Texas nationwide.
Such a rich history and fecund environment to create wealth…
… also mean The Empire State and gambling goes way back to the earliest days of gaming history in America, as far as 1656.
As lotteries were a common financing tool in the antebellum period, more than a dozen laws were enacted between 1721 and 1833. The State Constitution ratified in 1894 allowed only four exceptions to otherwise-prohibited statewide gambling.
In 1939, pari-mutuel betting on horse racing was legalized. In 1957, religious non-profit groups were given the green-light to run bingo. In 1966, the lottery was back, and finally, in 1975, other charitable organizations were allowed to conduct games of chance.
Other than off-track betting present since 1970…
…the land-based casinos’ scene remained non-existent until 1988 and the passage of the Indian Gaming Regulatory Act.
In 2001, several Indian brick-and-mortar venues were established. In the same year, video lottery terminals were authorized at several racetracks, converting them to racinos.Â
In 2013, New York allowed non-tribal casinos to operate across the state.
Upon the SCOTUS repulsion of the PASPA in 2018, the state legalized in-person sportsbetting only — which means that, as of 2020, its interactive arc remains off-limits. Punters may place wagers on all sports events except collegiate ones.
Online gambling is also prohibited, although the state actively considers legalization.
While some offshore iGaming operators continue to accept residents, the practice has been declining, especially after the Black Friday crackdown.Â
Legal Framework
The most relevant statutory acts to players are the New York Constitution, Penal Code 225 of Consolidated Laws, and Senate Bill 5883, which governs casinos and on-site sportsbetting.
Several initiatives to authorize interactive poker games surfaced in the past few years, albeit none resulted in legislation thus far, even though they stipulated rather stimulating revenues to the state.
The principal gambling regulatory body…
…is the New York State Gaming Commission (NYSGC), established in 2013 as the successor of the New York State Task Force on Casino Gambling, which has operated since 1996.
The NYSGC regulates all aspects of gambling in New York, ensuring “highest integrity, credibility, and quality” while operating in “the most efficient and transparent manner.”
The legal age for gambling activities varies depending on the vertical.
For the lottery, pari-mutuel wagering, and bingo, it is 18 years of age; for the casino gaming and sportsbetting, it is 21 years.
Casino operators are heavily taxed in New York — between 37% and 45% of GGR, depending on the region — while sportsbetting venues are subject to 10 percent tax. All tax allocations are distributed between state education funds, gaming administration, commissions, and allowances.
Licensing
A Resort Gaming Facility Location Board (RGFLB), appointed by the NYSGC, is in charge of land-based casinos’ licensing process.
All applicants go through a rigorous vetting process first and foremost conditioned upon the support of local communities they plan to operate within.
Each aspiring company seeking a Gaming Facility License must present detailed information on business history and financial statements, including background checks and multijurisdictional disclosure form.
Since New York considers that licensees “are seeking a privilege,” applicants also undertake a thorough interviewing process, which requires them to binding written answers to up to several hundred mandatory questions.
Regardless of the outcome, all operators applying for a Gaming Facility License have to pay a non-refundable $1 million fee.
Upon being awarded permission, the gaming facility has to pay an additional cost between $20,000 and $50,000 plus an annual fee of $500 for each slot machine or table at the premises.
An issued license is valid for ten years and renewable thereafter for additional ten years.
Other than this type of permit…
…aspiring operators in non-casino verticals may also submit for Supplier License or Sports Pool License (for sportsbooks) at the NYSGC and Racetrack Operator License issued by the Division of Gaming Enforcements, which supervises racetracks.
Players’ Protection
Responsible gambling plays an essential role in New York’s gaming scene.
The NYSGC maintains a constant 24-hour presence within the gambling premises to ensure all gaming devices and casinos remain certified by an independent test laboratory and sustain operations’ overall integrity.
Operators must also comply with various anti-money-laundering requirements, advertising restrictions, and on-premises displays.
All statewide establishments in every vertical allow for voluntary self-exclusion for one-, three-, or five-year period, including a lifetime ban. The State Commission utilizes procedures enabling those players to remain excluded from targeted mailings or other forms of promotions, including benefits.
Furthermore…
…the NYSGC, the Office of Alcoholism and Substance Abuse Services, and the New York Council on Problem Gambling jointly run the Responsible Play Partnership to address problem gambling.
This initiative ensures all venues comply with regulations and undertake outreach measures to provide the best ways to deliver long-term commitment toward preventing and treating compulsive gambling.
March is a Problem Gambling Awareness Month in New York State, which also runs several Problem Gambling Resource Centers.
Final Notes
Considering several legislative efforts that fell short in the last couple of years, especially in online gambling and mobile sportsbetting, it seems that keeping the players safe and providing a balanced approach to residents’ proclivities remain the governing motto among legislators in this predominantly blue state.
After all, unrestricted gambling operations in New Jersey and Pennsylvania are only one bridge or a couple of hundred miles away.
While it might be safe to assume that mobile wagering will soon enough become available to residents, online punters still have to bear in mind the restrictive regulatory framework in the Empire State.
Thus…
…we advise you to make proper due diligence before you opt to play and make your final call, as the state remains committed to crackdowns on illegal offshore operators.
Other than that, we wish you the best of luck as you remain responsible and prudent while you pursue your chances skillfully, staying well within the limits of your gaming budget!
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