In February 2022, New York State Senator Joseph Addabbo introduced S.B. 8412, a bill that would legalize online casino gaming (also known as “iGaming”) in New York. If passed, the Bill would give the New York State Gaming Commission (the Commission) the authority to issue iGaming “registrations” to (1) the state’s licensed commercial casinos; and (2) any New York-based American Indian Tribe that has entered into a valid tribal-state gaming compact and executed a “mobile interactive gaming wagering” agreement with the Commission. Each casino/tribal registrant would be permitted to offer up to two individually-branded iGaming platforms. Under the bill, casino/tribal registrants could either operate their own iGaming platforms or contract with third-party platform operators who could conduct iGaming operations on their behalf. As a condition of registration, each casino/tribal registrant would be required to pay a one-time fee of $2 million, and each third-party iGaming platform operator would be required to pay a one-time fee of $10 million.
The legislation would also impose a tax upon casino/tribal registrants equivalent to 25% of their gross iGaming revenue. All but $11 million of the iGaming tax revenue would be deposited into the New York State Lottery’s Fund for Education Aid. The remaining $11 million would be distributed at the Commission’s discretion for “problem gambling education and treatment purposes.”
On February 24, 2022, the bill was referred to the Senate Committee on Racing, Gaming and Wagering, which is chaired by Sen. Addabbo. At the time of publication, the Committee had not yet indicated when it will consider the bill. The New York State Legislature has until June 2, 2022, the final day of the current legislative session, to approve the legislation.
We will continue to monitor developments in New York and provide further updates when appropriate.