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What’s New in New York Gambling Laws?

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What’s New in New York Gambling Laws?

Posted on June 20, 2022

Debates, bills and legislative amendments are all part of the unique history of gambling in New York. The state approved a budget that would allow online gaming in 2021. In January 2022, New York became the 18th state to legalize online gambling, ushering in the future that is emerging now.

The seemingly endless gambling legislative changes in the various US states continue and are not expected to end anytime soon due to the renewed appreciation for legalized online gambling. The controversies surrounding New York legislation can hardly allow for a moment of appeasement or complacency in the state, whose gambling industry is still in its infancy. Here, we keep up to date with the latest developments in state gambling laws.

New York City to Approve Limited Operator Model

New York is in the process of approving the proposed limited operator model for online sports betting. The model has sparked heated debate as the governor supports it while lawmakers and game industry players oppose it. It will be included in the New York State budget for 2022.

The New York Lottery will have to seek proposals from two mobile game operators under the new model. The licenses will be outsourced by the New York Lottery to Caesars, DraftKings, FanDuel and Rush Street Interactive. The four companies are the only licensed sports betting operators in the state.

The New York state government hasn’t revealed much information about the application model. The model, however, is known to be part of its regulatory efforts to maintain control over the relatively new gambling industry. The budget legislation, once implemented, will mainly benefit licensed sports betting operators as they will be able to bid for one of the licenses. It will, however, hurt some players in the industry, including stadium betting kiosks located at various sports venues across the state.

The New York Senate introduced a second iGaming bill

Another recent development is the receipt of the second state iGaming bill by the New York Senate. In February, New York Senator Joseph Addabbo kicked off the year 2022 by proposing a new iGaming bill. The new bill aims to grow the state’s gaming industry by legalizing interactive games. The bill also aims to provide New York residents with access to platforms where they can gamble on online casino games. However, this limits players’ choices by allowing them to play games only on licensed platforms while in the state.

The new legislation will give the New York State Gaming Commission the power to issue online casino gaming licenses to casino operators. The commission will also have the legal authority to issue gaming licenses to Native American tribes in New York. The Native American tribe must have signed a “Mobile Interactive Gaming Wagering” agreement with the New York State Gaming Commission. It must also be part of a valid Tribal Gaming Agreement to be eligible for the new license.

Registered licensed casino operators will only be allowed to use two betting platforms. Both platforms, however, must be approved by the commission. Operators will also have to pay $2 million, and their partners who operate the brands online will have to pay a one-time fee of $10 million.

The bill was introduced a month after the state officially launched mobile sports betting. The state managed nearly $2 million in tax revenue in the first month. This demonstrates the huge revenue potential of its gambling industry. Senator Joseph Addabbo estimates that if the pending bill is approved, New York will gain more than $120 million in tax revenue, benefiting its residents.

The second iGaming bill has been submitted to the Senate Committee on Racing, Gaming and Betting. Senator Addabbo chairs the relevant committee. The New York State Legislature has until June 2, 2022 to pass legislation. The bill must be approved in a short period of time because the current legislative session will then end. If it does not pass, it will have to be taken up by the next session from the start of the process.

Possibility of other states following suit

New York’s online gambling legislation appears to follow the current trend of accepting iGaming in various US statess. Despite previous opposition, the state provides access to iGaming activities to the state’s 20 million residents. As a result, the gaming industry has demonstrated its ability to significantly benefit the state through revenue and taxes.

It is highly likely that other states will follow. Maryland and other states may soon change their minds, given the many benefits they can derive from the gambling industry. Within a year, we can expect legal sports betting to open in ten or more states, and this trend may continue until all states in the United States legalize online gambling.