After the repeal of PASPA, much of the emphasis was on legalizing sports betting. It was the sector that clearly had the most interest and the least social resistance. However, a few US states went all-in with their newfound liberties. Now, these pioneers of online casino gaming (iGaming) are reaping the benefits.
States like New Jersey and Pennsylvania are proving grounds for the economic success of online gambling. The great interest in the iGaming scene has led to significant tax revenues. This is despite both NJ and PA offering relatively low tax rates for their new gambling scenes compared to other states.
Now, one of the youngest but largest online betting markets is making moves to join the online casino fold. New York has seen a bill introduced to legalize iGaming, marking the first step in the process.
Two iGaming proposals under consideration in New York
Following the rampant success of online sports betting, a bill to legalize online casino gaming has been submitted. New York state senator Joseph Addabbo has referred the bill, Senate Bill 8412, for further approval. The premise of the bill follows that laid out by the online sports betting sector, with the New York Gaming Commission earmarked to oversee iGaming.
Should the bill be approved, it would allow for the remote play of online casino games. It also suggests that the money wagered on digital casino games run through equipment that’s to be located within a New York-based and licensed facility. This would, in theory, ground online casino platforms to a land-based casino in NY.
Having seen the success of sports betting, Senate Bill 8412 also doesn’t seek to step back from the state’s comparatively high taxes and fees. It suggests that land-based casinos pay $2 million and partnering online platforms pay $10 million in one-off fees. Then, the 25 percent gross gaming revenue tax will be applied.
Following Addabbo’s push via Senate Bill 8412, another iGaming bill has entered the fray. Legislation A09436 essentially lays out the same points in Addabbo’s bill. So, now there are two online casino gaming proposals to be reviewed in New York.
New York looks to be the perfect place for online casino games
Even though it took a while for New York to get on board, everyone in the industry knew that the city would become one of the biggest sports betting markets in the US once it was legalized. With its massive population and high average earnings, the market conditions were always strong.
In February alone, people in the Empire State wagered over $1.5 billion via online sports betting platforms. Even though this window featured the Super Bowl, it did mark a step back from the $1.6 billion wagered in the first few weeks of legal New York sports betting.
The state has certainly benefitted from sports betting, too. As of March 2022, the $3.6 billion handle – amount bet on sports – translated to $109 million in state tax revenues. Already, this is over half that of New Jersey. In Garden State betting, the $25 billion handle has yielded $214 million in taxes despite them opening in 2018.
Many say that it’s now only a matter of time before online casino gaming comes to New York. However, the state certainly dragged its feet on its way to introducing sports betting. Still, if it arrives, NY will certainly become a leading state for iGaming.