New York’s online sports betting market is booming and state legislators are looking for similar success in the interactive gaming (iGaming) sector.
Sen. Joseph P. Addabbo Jr., one of the driving forces behind New York’s online sports betting legalization, introduced Bill S8412 to the New York Senate on Thursday to legalize iGaming in the Empire State.
iGaming Table Games, Slots A Possibility
If approved, authorized casinos and online operators would be able to offer certain iGaming slot and table games on their specific platforms. The bill sets the iGaming tax at 25% and specifically notes that “promotional gaming credit will not be taxable for the purposes of determining interactive gaming gross revenue.”
The Empire State’s online sports betting tax rate is 51% and promotional play is taxed for sports betting gross gaming revenue.
According to the bills’ summary, New York would receive approximately $475 million annually in state tax revenue. In the first year of operation, the state would receive approximately $150 million in onetime license fees from casinos, operators and independent contractors that wish to conduct online iGaming.
Can NY Be An iGaming Leader?
Each casino or operator approved for online iGaming will pay a one-time fee of $2 million. Any independent contractor providing an operator’s online iGaming wagering platform and displaying its brand will be required to pay a one-time fee of $10 million.
New York envisions itself as a leader in the industry quickly after launch. According to the bill, in 2021 online casino gaming revenue exceeded $1 billion in both New Jersey and Pennsylvania, which results in approximately $120 million in tax revenue for both states.
New York has quickly become the leader in online sports betting during its first month of operation, generating nearly $70 million in tax revenue for the state. If authorized, legislators believe New York’s iGaming market could also be tops in the country.