Legalizing Online Casino in New York in 2025, a Bold Move: Insights from Sen. Joseph Addabbo's Bill

Bill details

If passed, the bill would create what is projected to be the nation’s most lucrative iGaming market. Each of the state’s nine regulated sportsbooks would have direct market access. That means FanDuel, DraftKings, and BetMGM, the nation’s highest-grossing online casino operators, would be positioned to launch in the state. 

So, too, would Caesars, BetRivers, Fanatics, Resorts World Bet, Bally Bet, and PENN Entertainment’s Hollywood Casino brand. The state’s four upstate commercial casinos, its three planned downstate casinos, as well as more than a dozen tribal casinos, would also have access to iGaming licenses. 

20 potential iGaming platforms

Overall, New York would be positioned for more than 20 potential iGaming platforms. Seemingly every U.S. iGaming operator would be interested in the market. The bill calls for a 33.5% tax on gross gaming revenue, below the state’s 51% levy on mobile sportsbooks. Online slots and table games have higher margins than sportsbooks, meaning the potential for hundreds of dollars in annual revenue (after taxes) across the legal operators. 

Addabbo’s proposal is also one of the first to require a deposit notification mandate. Each licensee would have to alert customers when their lifetime deposit threshold eclipsed $2,500. Online lottery ticket sales would also be authorized in the legislation.

Unregulated slot and social casinos would be prohibited from seeking licensure for at least three years. “By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents,” Addabbo wrote in a statement released ahead of the filling of the bill. 

Obstacles remain 

The bill mirrors similar iGaming legalization efforts Addabbo, the chair of the Senate’s gaming committee, has championed in prior legislative sessions. It faces many of the same challenges. Online casino gambling is less politically palatable in many statehouses than sports betting. Only seven states have legal iGaming, whereas 39, plus Washington, D.C. and Puerto Rico, have approved sports betting. Proponents such as Addabbo will have to overcome conservative anti-gambling opposition from the political right as well as concerns from the left over legalized gambling’s impact on the economically disadvantaged. 

Labor unions representing some of the state’s brick-and-mortar gaming interests have also opposed the bill over concerns it will hurt in-person gambling visits and diminish employment opportunities. 

Gov. Kathy Hochul is another potential roadblock. The governor did not mention iGaming in her State of the State speech earlier this year, an indicator that online casino legalization is not a priority in what is expected to be the state’s more than $200-billion budget. The fate of the state’s three downstate casinos could also play a factor. State officials have taken a methodical approach to awarding the licenses, with a decision not expected until after the 2025 New York legislative session concludes this spring.

Lawmakers decision

Lawmakers may wait until after the licensing decision and pass on iGaming until the 2026 session. New York neighbors New Jersey and Pennsylvania are two of the four states with fully competitive legal iGaming markets, along with Michigan and West Virginia. Connecticut, Rhode Island, and Delaware also offer legal iGaming but restrict market access to two providers or fewer. The state’s nine online sportsbooks accepted more than $20 billion in bets and contributed more than $1 billion in taxes in calendar year 2024. Online casino gaming would likely eclipse that figure, even with the lower proposed tax rate.