Online Gambling Bill in New York Undergoes Amendment

More than two years ago, New York launched its legal online sports betting market. Since then, different milestones have been surpassed, highlighting the success of the market and its exceptional potential. While online sports betting has been a blast ever since its launch, lawmakers in the state continue to pursue options for legalizing online gambling.

One such effort is led by Sen. Joseph Addabbo, who introduced a new iGaming and iLottery bill in the state early last month. The proposal, Senate Bill 8185 (S8185), called for authorizing online gambling activities, as well as online lotteries across New York. 

S8185 was initially referred to the New York Senate Racing, Gaming and Wagering Committee on January 11, 2024. After that, earlier this week, the bill was amended and recommitted to the Committee. In the latest edition, the proposal included Article 15, describing in detail the future planned iGaming sector. The edit of the bill highlights that online gambling activities are currently available in seven other US states and proposes the establishment of a robust and competitive market.

Besides commercial operators, the proposal invites tribal operators to also apply for iGaming licenses. Yet, their participation is subject to waiving their “exclusive geographic right to offer and conduct interactive gaming” on tribal lands. This otherwise means that tribal operators can offer iGaming activities but within their tribal lands, consumers are going to be able to access the services of other licensed operators.

The Proposal Outlines Taxes, Dedication of Funds to Treating Problem Gambling

Another important part of the latest amendment within S8185 relates to the iGaming and iLottery operators’ relations with union workers. According to the proposal, each online gambling operator must enter into “a labor peace agreement with labor organizations that are actively engaged in representing or attempting to represent gaming or hospitality industry workers in the state as a major component of its application for an interactive gaming license.” In other words, this text is expected to ensure that online gambling operators will be required to employ workers who are part of unions.

When it comes to taxes, the proposal calls for the implementation of a 31.5% tax for online gambling operators’ gross gaming revenue. The collected taxes would benefit the New York lottery fund for education aid.

Annually, some $11 million would be dedicated toward treating problem gambling and education. This will be achieved in cooperation with the New York State Office of Addiction Services and Supports.