New York State Senator Joseph Addabbo is pushing forward a new bill aimed at legalising online gaming and poker, potentially turning the state into the largest online gaming market in the US. With this move, Addabbo, chair of the Senate Racing, Gaming, and Wagering Committee, hopes to replicate the success of mobile sports betting, which has already delivered record-breaking tax revenues.
What’s in the Proposed Bill?
The newly proposed bill, SB S2614, lays the groundwork for an expansive online gaming framework. Under its provisions:
- Current Operators: Nine sports betting operators already licensed in New York would be eligible to offer online gaming services.
- Expanded Licenses: Four upstate casinos, three planned downstate casinos, and over a dozen tribal gaming operators could also join the market.
- Tax Structure: The proposal sets a 33.5% tax on gross gaming revenue, a notable reduction compared to the 51% tax imposed on mobile sports betting.
- Player Protections: Operators would be required to notify players who reach a lifetime deposit threshold of $2,500.
- Lottery Sales: The bill would also allow New Yorkers to purchase lottery tickets online.
The state has 34 casinos in total—21 tribal and 13 commercial—which employed nearly 70,000 people and generated $4.72 billion in gross gaming revenue as of 2023. These numbers are expected to climb further with the addition of new gaming opportunities.
Why Now? The Potential for a Booming Market
New York’s large population of 19.6 million makes it a prime candidate for expanding online gaming. If legalised, the state could join the country’s online poker shared liquidity agreement, boosting participation and revenue across multiple states. Industry experts suggest New York could become the largest online gaming market in the nation, eclipsing others in terms of revenue potential.
In 2024, New York’s mobile sports betting industry collected over $1 billion in tax revenue, driven by a staggering $22.3 billion in total wagers. The online gaming sector, if legalised, could add significantly to this financial success.
Tackling Sweepstakes Gaming
A notable aspect of Addabbo’s initiative is his plan to address sweepstakes casinos. These unregulated platforms operate under the radar, often raising concerns about consumer protection. Addabbo’s legislation aims to:
- Ban social and sweepstakes casinos from operating in New York.
- Prevent these companies from applying for an iGaming license for three years.
The move underscores a broader strategy to offer New Yorkers a safer, regulated gaming environment while simultaneously driving state tax revenue. Addabbo’s approach mirrors similar actions in New Jersey, where a bill to regulate sweepstakes casinos was recently proposed.
A Broader Legislative Trend Across States
New York’s renewed focus on online gaming aligns with efforts in other states to expand iGaming and online poker. In early 2025:
- Massachusetts, Indiana, and Wyoming have introduced their own online gaming bills.
- New Jersey continues to lead the charge with legislation addressing both regulated and unregulated gaming platforms.
While these efforts highlight a growing national interest, New York’s entry into the fold could serve as a major tipping point, given its economic and demographic scale.
Challenges and Opportunities Ahead
Despite its potential, the bill faces significant hurdles. Addabbo has attempted to pass similar legislation in recent years without success. Opposition often stems from concerns about gambling addiction and the social impact of increased accessibility. However, proponents argue that a regulated environment, coupled with safeguards like deposit notifications, would better protect consumers than the current status quo.
For the industry, the stakes are high. If successful, the bill could attract major players and innovations, turning New York into a competitive hub for online gaming. On the flip side, failure to act might leave the state lagging behind others, missing out on both tax revenue and economic benefits.
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