New York Governor Kathy Hochul has made it clear that online casino gambling, often referred to as iGaming, is not on the horizon in the Empire State after her 2025 executive budget failed to include any potential tax revenue from what would be this new revenue stream.
Let’s take a quick look at the Governor’s stance and assess what implications this might hold for the online sportsbooks landscape.
Budget Foreshadowing
Much like last year, Governor Kathy Hochul’s 2025 budget did not recognize any additional funds flowing into the state’s coffers via an online casino gambling tax. That is an ominous sign for those who are advocating the launch of iGaming in the state.
Due to the overwhelming success of online sports betting in New York, many believed the next logical step would be to legalize, license, and launch online casino gambling where the hold is much higher than that of online sports betting. However, many believe the gambling expansion could be too much of a good thing.
Yet, horse racing was featured in the budget with the governor looking to maintain the prevailing taxes on parimutuel betting and simulcast provisions. However, fixed-odds racing at tracks at parimutuel betting facilities, like the proposal Senator Joseph Addabbo sponsored, was not included in the budget mix.
But Governor Hochul is not blind to the benefits of online sports betting and said as much at her press conference earlier this month, “Over the last two years, New York is the clear leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports, and problem gambling prevention. I look forward to this third year of our successful gaming policies that deliver top-tier mobile sports wagering experiences.”
What’s in the Bill?
New York’s champion of virtually all forms of gambling in the Empire State, Sen. Joseph Addabbo, has proposed an iGaming bill through his Senate Bill S8185 that would bring another lucrative tax revenue stream into the state’s tax coffers.
Upon announcing it last year, Addabbo referenced the importance of having the governor’s support to get it passed by saying, “We know we need revenue in New York. Here we are, we’re on the cusp of an iGaming and iLottery bill, and all I need is the Governor in her budget to merely say seven words or so. ‘We’ll look and explore the possibilities of iGaming and iLottery.’ No other details.”
However, those words have not been uttered by the governor, casting a pall over the prospects of the online casino gaming bill going anywhere in this legislative session.
The senator’s iGaming bill would legalize and launch mobile casino gambling and poker, which would be taxed at a much lower rate than the 51% currently levied on mobile sports betting. The bill calls for a tax rate of 30.5% on both online casino and poker wagering and would charge gaming operators $2 million for an initial 10-year licensing term.
New York took in a whopping $700 million in tax revenue on sports betting alone but Addabbo believes that even though the iGaming tax rate would be substantially lower, the revenues would eclipse mobile sports betting and generate approximately $1 billion in new tax revenue.
Calculators
