In a continued effort to bring online casino gaming (or iGaming) to New York, State Senator Joseph P. Addabbo Jr. has reintroduced Senate Bill 2614 (SB2614) for the 2026 legislative session.
Senate Bill 2614 would change New York's gambling landscape in many ways, including:
- High Tax Rate
- Regulates Online Lottery Sales
- Restricts Participation
As the chair of the Senate Racing, Gaming and Wagering Committee, Addabbo is at the forefront of the push to legalize and regulate digital gaming platforms within the state.
Background on Senator Addabbo’s Legislative Journey
This marks the fourth consecutive session in which Senator Addabbo has championed iCasino legalization.
His persistent optimism and strategic influence have kept the conversation alive despite previous setbacks. Alongside SB2614, Assemblymember Carrie Woerner has introduced the companion bill A6027 in the Assembly, aiming to establish a framework for legal online casinos.
Key Provisions in the Proposed Legislation
The proposed bills seek to establish a regulated environment for online casino gaming, which includes:
- Licensing: Open to existing land-based casinos, video lottery terminal (VLT) facilities, Native American tribes, and operators of licensed mobile sports betting.
- Fees and Taxes:
- Operator license fees are set at approximately $2 million, with higher fees for platform providers.
- A tax rate of 30.5% on gross gaming revenue, competitive with other states, but is more than twice New Jersey's rate.
- Additional Requirements:
- Studios for live-dealer games must be located in New York.
- Licenses provided would be valid for a 10-year term, with one platform allowed per operator.
Senator Addabbo emphasizes that these measures could potentially generate over $1 billion annually in tax revenues, enhance consumer protections and combat the illegal offshore gambling market.
Current Status and Future Prospects
SB2614 has been referred to the Senate Racing, Gaming and Wagering Committee. Despite limited progress—no scheduled votes or hearings—the climate is becoming more conducive for legislative discussion:
- Online casinos currently remain illegal, leaving residents to turn to unregulated offshore platforms.
- While Governor Kathy Hochul has not explicitly backed iGaming legalization, her advocacy for protections against underage mobile sports betting aligns with Addabbo's regulatory goals.
- Recent developments, such as the ban on sweepstakes casinos in December and the advancement of downstate casino licenses, have set the stage for more serious talks.
The path to legalizing iGaming has not been without its obstacles:
- Tribal Gaming Compacts: Negotiating acceptable terms with tribal gaming entities.
- Problem Gambling: Addressing concerns surrounding potential increases in gambling addiction.
- Competitive Landscape: Balancing the coexistence of online platforms and traditional land-based casinos.
- Political Negotiations: The intricate dynamics of gaining political support and prioritization.
Despite these hurdles, optimism persists due to Senator Addabbo’s past successes in related legislative areas and the thriving sports betting market in New York since 2022.
While he remains hopeful for the passage of online casino legislation in 2026, widespread support, particularly from the Governor and Assembly, will be crucial. If successful, New York stands to become a leading player in the U.S. iGaming market, leveraging its large population and established infrastructure.
