SB2614  has been referred to the Senate Committee on Racing, Gaming, and Wagering, marking the latest effort to expand the state’s gaming laws into the digital space. This move comes as part of Addabbo’s long-standing efforts to advance online gaming in New York.

Under the proposed legislation, the entities eligible for iGaming licences would include casinos, video lottery terminal (VLT) facilities, Indian tribes, and online sports betting operators.

However, companies that have previously offered unlicensed games requiring a licence from the New York State Gaming Commission (NYGC) are not eligible to receive licensure.

SB2614 proposes amendments to existing gaming and tax laws to establish a framework for interactive gaming and online lottery operations.

It introduces a new regulatory structure under the NYGC to oversee licensing, taxation, and the operation of online gaming platforms.

The bill also emphasises responsible gaming initiatives, including funding for problem gambling education and treatment programs.

As a licensing requirement, the commission mandates that each casino, VLT facility, or operator authorised to operate online gambling must pay a one-time fee of $2m.

Additionally, any independent contractor providing an iGaming wagering platform or displaying its brand is required to pay a one-time fee of $10m for approval.

Breaking down the details

Key provisions include:

– Only one skin per operator

– Limiting online gaming operations to entities licenced for physical gaming, such as casinos and video lottery terminal facilities

– Requiring that servers accepting wagers be located on the premises of licensed facilities

– Establishing a 30.5% tax rate on the operator’s gross gaming revenue

– Mandating compliance with responsible gaming measures, including age verification, self-exclusion tools, and support for problem gambling programmes

– $2,500 annual limit on credit card funding. In addition, when an account holder’s lifetime deposits surpass $2,500, the licensee is required to suspend further wagering until they receive additional disclosures about problem gambling resources and provides the necessary acknowledgments.

Interactive gaming, as defined in the bill, encompasses online versions of casino games such as poker, table games, and slot machines. Online lottery gaming includes digital ticket sales for traditional games and multi-jurisdictional lotteries.

Addabbo determined to make iGaming happen

Senator Addabbo, who is working on a plan to ban sweepstakes casinos in the state, has been a prominent advocate for interactive gaming in New York. In previous legislative sessions, he introduced similar measures to legalise iGaming, including last year’s legislation.

Despite broad support from stakeholders, these proposals faced challenges in gaining traction, particularly during budget negotiations.

In 2024, Addabbo sought to persuade Governor Kathy Hochul to include iGaming provisions in her budget for the upcoming fiscal year, arguing that the measure could generate significant revenue for the state.

Addabbo cited the success of New York’s mobile sports betting programme, which launched in 2022 and quickly became the nation’s largest, as evidence of the potential for online gaming to provide substantial economic benefits.

However, the proposal was ultimately excluded.

If enacted, SB2614 would position New York alongside neighbouring states like New Jersey, Pennsylvania, and Connecticut, where online gaming is already legal and thriving.

The committee review process will examine the bill’s alignment with state and federal gaming regulations, as well as its projected impact on economic growth and social responsibility.