New York introduces online casino bill

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Jeffrey | Poker Strategy

Recently, New York lawmakers introduced new legislation which aims to create the country’s most lucrative legal online casino gambling sector. When adopted, the new bill will permit authorized operators to host table games and regulated slots.

The bill does not specify which particular casino games the law will permit. However, in all likelihood we can anticipate the most popular games, such as blackjack, roulette, and poker.

Gaming in New York
In the first year after legalizing mobile sports betting, New York saw almost $16 billion in wagers across the state. This makes its mobile sports betting market the largest in the United States.

Currently, the state taxes sportsbooks at 51% of their total gaming income. However, this will change under the proposed legislation. Once it passes, each online operator NY online casino will be subject to a 25% tax on its gross profits.

It’s important to note that the hold percentages for online casino games are typically roughly 8% higher than those for sportsbooks. Furthermore, businesses in New York cannot deduct any expenses related to advertising or other publicity after taxes.

Top operators in New York
Up to 14 mobile sites anticipate receiving licenses this year under the proposed legislation. These include two partners for each of the state’s four operating commercial casinos, plus three additional casinos. Native American tribes which operate casinos in the state will also get access to iGaming.

BetMGM, Caesars, DraftKings, and FanDuel are the biggest names in gambling due to apply for licenses in New York state. Between them, these operators control more than 80% of the market in both New York City and the entire nation. Other companies hoping to become licensees include Bally Bet, BetRivers, PointsBet, Resorts World Bet and WynnBet.

The future of gaming in the country
The legalization of online table games and slots is often controversial. This is mostly due to concerns that it may encourage gambling addiction. On top of that, there is resistance from many brick-and-mortar casino owners. They are worried that online competition will eat into their profits.

However, such fears appear to be unfounded. Research and revenue figures from existing legal markets indicate that online games tend to attract younger people. Older customers are more likely to do their betting offline. Therefore, online games serve to complement retail casinos.

In the next few weeks, the state Assembly of New York’s Racing and Wagering Committee will hold a hearing on the proposals. The bill will move to the next stage of consideration — deliberation by the full Assembly — once it leaves the committee. Any pushback there is likely to be mirrored if it moves on to the state senate.

When the bill eventually wins approval from both chambers, it will become law.

Bottom line
Internet casinos generate more profit for businesses and tax income for states than sportsbooks. However, legaliziing them has historically been challenging throughout the USA. Now the industry hopes this is changing with the most recent reforms. Several pieces of legislation aiming to overhaul New York’s parimutuel horse racing sector are also under consideration.

The measures follow recent sports betting legislation, which calls for licensing an additional nine businesses in the state over the next year and another two by 2025, for 16 in total.

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