Efforts to legalize online casinos in New York gained momentum when Senator Joseph Addabbo Jr. introduced Senate Bill S4856 in February 2023, marking the beginning of a concentrated push to expand the state’s gambling framework.
Months later, in December of the same year, both Addabbo and Assembly Member J. Gary Pretlow doubled down on their stance, expressing their support for legalization in a published opinion piece. The legislation would mirror the successful regulatory model already applied to mobile sports betting, which has been operating since early 2022.
The financial motivation behind this push is clear. Advocates project that iGaming could generate up to $3 billion in annual revenue for New York, addressing the estimated $1 billion lost every year to neighboring states and illicit gambling markets.
The regulatory structure proposes a tax rate for online casinos at 30.5 percent, substantially lower than the state’s 51 percent tax on sports betting. Supporters argue this could incentivize compliance among operators while still reaping substantial returns for state programs.
Record-Breaking Success in Sports Betting
Data from sports betting in New York further bolsters the case for legalization. In October 2024, a staggering $2.32 billion was wagered, setting the record for the highest single-month handle not just in New York but in the entire United States. These numbers reflect consistent growth, with a 15.7 percent increase year over year. Despite its high tax rate—the highest in the nation—New York remains an attractive market for operators, and its robust performance in sports betting raises questions about why online casinos remain excluded.
Since the legalization of mobile sports betting in 2022, bettors in New York have placed nearly $40 billion worth of wagers. The state has also outperformed competitors like New Jersey and Nevada, which saw betting volumes of $22.9 billion and $16.1 billion, respectively, during the same period. But while sports betting flourishes, iGaming remains stalled in legislative limbo.
## Potential Benefits of Competitive Incentives for Gamers
One argument for legalizing online casinos in New York revolves around the incentives operators are likely to provide. Currently, sports betting platforms in the state offer a range of promotions to gain a competitive edge, including lucrative signup bonuses and periodic rewards. If online casinos enter the market, analysts predict that players could benefit from similar perks, further boosting revenue potential for the state.
For example, operators might introduce bonuses for online casinos as part of their marketing strategies alongside free spins or cashback offers. These incentives could encourage gamblers to choose legal platforms over unregulated alternatives, aligning with the state’s regulatory goals.
Economic and Regulatory Considerations
Las Vegas Sands recently hinted at the financial ripple effects legalization could have. The company, which had been eyeing a $6 billion casino project on Long Island, is reportedly reevaluating its plans given the likelihood of online casinos entering the market. Casino operators realize that legalized iGaming presents an opportunity to significantly expand their revenue streams, eclipsing what is currently achieved through sports betting alone.
Estimates suggest iGaming could generate over $1 billion in additional annual revenue for the state—a figure too large for legislators to ignore. For regulators, the transition appears relatively straightforward, as the proposed legislation plans to adapt existing frameworks for sports betting to ensure consumer safety and market oversight.
Addressing Problem Gambling
Critics of legalization often point to the risks of gambling addiction, particularly with online slots, which dominate the iGaming sector and are tied to higher rates of problem gambling. Recognizing this, the proposed bill includes specific measures to address addiction, such as designating $11 million annually for problem gambling programs—a substantial increase from the $6 million currently allocated for sports betting addiction resources.
Advocates like Jim Maney of the New York Council on Problem Gambling believe these measures are both necessary and overdue. Nevertheless, some suggest even more funding may be required to adequately address the risks associated with expanding legalized gambling access.
The Case for Moving Forward
Legalizing online casinos in New York is no longer a fringe idea. It represents a logical progression for a state that has already embraced gambling in various forms, from land-based casinos to mobile sports betting. The staggering revenue figures, combined with a clear plan for regulation and targeted funding for problem gambling, present a solid case. At this point, the conversation has shifted not to “if” but to “when” lawmakers will finally make iGaming legal in the Empire State.
