A number of US territories have officially legalized online gambling activities at present. Notable states include New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, and Connecticut. As Rhode Island prepares to unveil its legal internet gaming scene this April, New York state’s advancement toward legalizing online gambling is also taking shape. Just a week ago, State Sen. Joseph Addabbo, known for his unwavering support for broadening gambling opportunities, re-presented a bill aimed at facilitating the acceptance of iGaming across the state.
The advanced bill, SB 856, happens to be the same proposal tabled a year ago. Besides advocating for online gambling, SB 856 presents arguments for the legalization of online lottery games, thereby enabling New Yorkers to conveniently purchase lottery tickets online for Mega Millions or Powerball. The bill is also clear on the enactment of legal protocols for online table games and slots as a part of the online gambling scene.
If Gov. Kathy Hochul signs Gov. Kathy Hochul the proposal into law, New York can be added to the rapidly growing list of states that accommodate legal online gambling activities. One key advantage of fostering iGaming is the increase in tax revenue for New York. Based on the re-presented proposal, businesses venturing into providing online gambling services are obliged to pay a 30.5% tax, in addition to a one-time $2 million licensing fee.
State Sen. Addabbo has been a strong advocate for legal gambling in the past, and this bill is his latest endeavor. Previously, his tireless effort helped legalize sports betting in his state, a move that has proven beneficial in bolstering the state’s tax collections.
Online Gambling Revenue to Boost Education Funding
Should iGaming get the green light in New York, the earnings from this new venture will benefit the Lottery Fund in the state. The fund plays a central role in financing educational initiatives across the state. The bill re-emerges at a time when the state is already grappling with an anticipated deficit of $4.3 billion by 2024, a figure that could easily double by next year.
In December, Addabbo shed light on the potential benefits of legalized iGaming in an opinion piece published by City & State New York. He expressed his concern about the unscrupulous gambling operators who are capitalizing on hundreds of millions of dollars earmarked for iGaming, as the state continues to face a projected budget deficit.
Addabbo suggested using iGaming earnings to fund public educational institutions and various schooling programs. He predicted that a well-regulated iGaming industry could generate up to $1 billion annually.
Under the conditions of SB 856, sports betting firms can apply for an iGaming license. Furthermore, the bill allows racinos and tribal operators to seek licenses for online gambling, thus establishing a robust and competitive iGaming market. With the reintroduction of the bill expected this legislative season, its future remains in the hands of New York lawmakers.
