New York Reviews Bills to Authorize Online Casino Platforms

New York legislators are advancing proposals that would introduce regulated online casino gaming to the state for the first time. A Senate bill from Sen. Joseph Addabbo and an identical Assembly measure define a structure that would bring online slots, poker, table games, and live casino formats under the supervision of the New York State Gaming Commission. The measures restrict participation to commercial casinos, tribal gaming operators, and licensed sportsbook companies, preventing new applicants from entering the market through fresh licensing rounds.

The bills lay out financial obligations and operational requirements for eligible operators. Online casino license holders would pay a $2 million fee, while companies using independent branding through their own platforms would be charged $10 million. Licenses could run for as long as ten years. The New York State Gaming Commission would have a ninety-day deadline to approve or deny applications, which supporters argue could accelerate deployment compared with issuing new physical casino licenses.

The proposed tax rate for online casino revenue is set at 30.5%. This rate sits below New York’s 51% tax on sports wagering but above levels applied in several other U.S. jurisdictions. Tax proceeds would feed the State Lottery Fund to support educational initiatives. The legislation also designates annual allocations, including $11 million for gambling addiction services and a minimum of $25 million for workforce development, responsible gambling outreach, and broader health-related initiatives. Early revenue expectations suggest $2.5 billion in the first year of regulated activity, increasing toward $4.5 billion over time.

Addabbo described the bills as a method to establish oversight of gambling activity that already occurs online. “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 further remarked, “If online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections.” Measures in the proposal include player self-exclusion, deposit limit settings, a $2,500 credit card deposit ceiling, and visible problem gambling resources.

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The initiative marks the fourth consecutive session in which Addabbo has called for online casino legalization. He noted the financial implications of inaction, stating, “For every year we don’t do it, we lose about a billion dollars to New Jersey, Connecticut, Pennsylvania and the illegal market.” In his view, regulated online casino gaming could help offset expected shortfalls in federal health care funding and reduce the risk of minors accessing gambling sites outside state control.

The bills permit casinos, video lottery terminal facilities, sportsbook operators, and tribal gaming entities to launch regulated online casino products. Addabbo also acknowledged concerns about the impact on land-based casino revenue, citing opposition from the National Association Against iGaming. He referenced examples from Pennsylvania and New Jersey, where online operations coexist alongside physical casino venues. Addabbo additionally raised questions about 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 proposals are currently under review by the Senate Racing, Gaming, and Wagering Committee and the Assembly Racing and Wagering Committee. Should the bills clear both chambers and receive approval from Gov. Kathy Hochul, they could take effect immediately and establish a regulated pathway for online casino gaming in New York.

Source:

New York Moves to Legalize Online Casino Gaming, LCB.org, January 24, 2026