The Fate of iGaming in New York Hangs in the Balance
As New York's fiscal landscape continues to evolve, a significant piece of legislation hangs in the balance. Senator Joseph Addabbo Jr.'s proposed iGaming bill, which could potentially bring substantial revenue to the state, was notably absent from Governor Kathy Hochul's 2025 budget plan.
The bill under consideration sets forth a 30.5% tax rate on online casino revenue. This proposal comes on the heels of the inclusion of online sports betting in the 2022 budget, which currently endures a hefty 51% tax rate. The introduction of iGaming could serve as a boon for state profits, potentially helping to alleviate budget shortfalls that have long plagued the state's economy.
Governor's Stance and Legislative Outlook
The absence of the iGaming bill from the governor's budget raises questions about its future. It appears that Governor Hochul may not be inclined to support the bill during the ongoing 2024 legislative session. This lack of support from the state's executive branch could spell trouble for proponents of the bill, who argue that legalizing iGaming is essential for New York to capitalize on an already thriving market.
Without the legalization of iGaming, there is a concern that New York could continue to lose potential revenue to neighboring states where such online gambling is legal, or worse, to illegal operations. This scenario not only deprives the state of much-needed funds but also leaves consumers without the protection of regulated and reputable companies.
Industry Perspectives and Lobbyist Influence
Within the industry, opinions on the bill's prospects are mixed. Steve Brubaker, an industry lobbyist, has expressed skepticism regarding the bill's chances of passing. Brubaker points out that companies interested in entering the market might need to divest certain interests before they can apply for a license, should the bill pass—a move that could complicate the process for many potential entrants.
Last year's legislative language surrounding the issue may have been altered in ways that favor specific industry players, suggesting that lobbyists have had a hand in shaping the bill to benefit certain companies. Brubaker's remarks highlight a common practice in legislative processes, where bills are sometimes crafted to legislate market share, ensuring advantages for particular entities over others.
Brubaker's insights extend beyond mere speculation. He suggests that the language used in the previous year's legislation was potentially influenced by Evolution Gaming (Evo) or by casino companies that utilize their services, implying that these changes were made to give certain operators an edge in the market.
The Economic Implications
The economic implications of the iGaming bill's success or failure are significant. Senators Addabbo and Representative Pretlow have emphasized the urgency of the situation, noting that the state cannot afford to let potential revenue slip through its fingers, especially when such funds could bolster public services like education. Their argument underscores the broader impact that the passage of the iGaming bill could have on New York's financial health and social services.
With the current legislative session unfolding, all eyes are on potential amendments to the bill. These modifications could shift the focus or alter the dynamics of what Brubaker describes as a battle for control of the live dealer segment within the industry. Whether these changes will address concerns about fairness and market competition remains to be seen.
Conclusion
The future of online gambling in New York is indeed uncertain, with various stakeholders holding divergent views on the matter. The outcome of the iGaming bill will undeniably have a profound effect on New York's economy and the gaming industry at large. As legislators debate the merits and drawbacks of the bill, the state stands at a crossroads, with the potential to secure a lucrative new revenue stream or to continue watching dollars flow across its borders.
In the end, the decision rests in the hands of New York's lawmakers, who must weigh the financial benefits against any potential societal costs. With the legislative session in full swing, the fate of iGaming in New York hangs in a delicate balance, awaiting a verdict that could reshape the state's economic landscape for years to come.