New York’s hopes of legalizing online casino gaming have been dashed once again, as the state budget for the fiscal year 2024 did not include any provisions for iGaming.
Let’s go through the main reasons behind this failed attempt and its potential impact on the online sportsbooks industry.
No Jackpot Joy
Since New York online casinos are absent from both the executive budget and proposals from legislative chambers, they will not be included in the final budget discussions. The state is required to finalize the 2024-25 Fiscal Year budget by April 1.
This means that New Yorkers will have to wait at least another year before they can enjoy the convenience and excitement of playing casino games online.
Why Was iGaming Left Out of Budget?
According to some sources, the main reason for the exclusion of online casino gaming was the opposition from Governor Kathy Hochul, who has been skeptical about the benefits and feasibility of iGaming.
The governor declined to entertain the legalization of iGaming this year, citing, in part, staunch opposition from the New York Hotel and Gaming Trades Council (HTC), which expressed concerns over potential job losses at traditional casinos.
In his legislation, State Senator Joseph Addabbo earmarked a $25 million fund for casino workers, aiming to garner support from the union. He expressed frustration that the HTC declined to engage in negotiations regarding the conditions for endorsing online casino legislation.
Additionally, the ongoing downstate casino license process played a role in the decision-making.
iGaming Could Generate Big Bucks in New York
Addabbo has expressed his disappointment and frustration with the state budget, saying that it missed a golden opportunity to tap into a lucrative and growing market.
According to a study by Eilers & Krejcik Gaming, a research firm, New York could generate up to $2.5 billion in annual gross gaming revenue from online casino gaming, making it the largest iGaming market in the US.
The study also estimated that New York could collect up to $500 million in annual tax revenue from iGaming, which could help address the state’s fiscal challenges.
Supporters Hope to Continue the Conversation
Despite the setback, Addabbo and other supporters of online casino gaming have vowed to continue their efforts to legalize iGaming in New York.
They hope that the success of online casino gaming in neighboring states, such as New Jersey and Pennsylvania, will persuade Cuomo and other lawmakers to reconsider their stance on iGaming.
“It’s out of the budget but that doesn’t mean we cannot resume that conversation in June or December. It materializes at any point,” Addabbo said.
New York’s legislative session runs to June 6.
What’s Next for iGaming Bill in New York?
The state budget did include some measures to expand sports betting and authorize three new casinos in the downstate region. However, time is running out for New York to get a jump on the states already jumping on the iGaming bandwagon.
Multiple states have already authorized or launched iGaming, including (most recently) Rhode Island, and several others are considering or pursuing iGaming legislation. If New York does not act soon, it may lose its competitive edge and miss out on a significant source of revenue and entertainment for its residents.
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