Lawmakers Weigh Legal Online Casino Market in New York
New York lawmakers are evaluating a proposal to expand the state’s gambling profile by authorizing online casino gaming. Senate Bill 2614, introduced by Sen. Joseph Addabbo, and its companion bill in the Assembly, A6027, would allow online slots, poker, table games, and live dealer titles through platforms operated by existing licensed gambling entities.The bills confine eligibility to commercial and tribal casinos, as well as licensed sportsbook operators, while prohibiting the issuance of new licenses.
Licensing and Operating Structure
The legislative framework includes several financial requirements for prospective operators. The bills set a licensing fee of $2 million for online casino operators. Independent platform providers that operate under their own brand would pay a $10 million fee. Licenses could remain active for up to ten years. Under the proposal, the New York State Gaming Commission would have ninety days to approve or deny applications, an approach lawmakers believe would allow online operations to begin more quickly than issuing new land-based casino licenses.
The proposed tax rate for online casino revenue stands at 30.5%. This level is below the 51% rate levied on mobile sports betting but above rates found in some other states. Collected revenue would be allocated to the State Lottery Fund to support education. The bills designate $11 million per year for problem gambling education and treatment programs. At least $25 million annually would be directed toward responsible gaming initiatives, workforce training, and health-focused programs. Estimated first-year revenue could reach $2.5 billion, with potential growth to $4.5 billion in future periods.
Addabbo framed the legislation as a method to organize online gambling activity already present in the state. “Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernization of New York’s online gaming landscape.” He added, “If online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections.” Safeguards written into the bills include a $2,500 credit card deposit limit, player controls for deposit caps, self-exclusion tools, and clear access to problem gambling resources.
Capturing Revenue Lost to Other Markets
For the fourth straight session, Addabbo indicated confidence that New York would move forward with the legalization of online casino gaming. “For every year we don’t do it, we lose about a billion dollars to New Jersey, Connecticut, Pennsylvania and the illegal market,” he said. He argued that regulated online casino offerings could help compensate for anticipated declines in federal health care funding, while also preventing minors from engaging with unregulated platforms.
The legislation would extend authorization for online casino offerings to casinos, video lottery terminal facilities, sportsbook operators, and tribal entities. Addabbo acknowledged concerns about the effect on land-based operators revenue, referencing the National Association Against iGaming as a group that has voiced opposition. He pointed to Pennsylvania and New Jersey as examples where physical and online casino activity coexist. He also expressed interest in establishing rules for prediction market platforms such as Kalshi, asking, “We have operators paying 51% — what if someone like Kalshi is not paying anything and it’s creeping into that? How do you address it? Regulate it.”
The bills remain under review in the Senate Racing, Gaming, and Wagering Committee and the Assembly Racing and Wagering Committee. If passed and signed by Gov. Kathy Hochul, the proposed framework could take immediate effect, further expanding New York’s gambling sector through regulated online casino offerings.
Source:
New York Moves to Legalize Online Casino Gaming, LCB.org, January 24, 2026