NY Online Casino Legislation Introduced Again, Will iGaming Legalize In New York In 2026?

As expected, online casino legalization legislation was introduced in the New York Senate and New York Assembly this week.

On Wednesday, Sen. Joseph Addabbo Jr. reintroduced Senate Bill 2614, while Asm. Carrie Woerner introduced Assembly Bill 5922.

These bills would see any casino, New York tribe, online sports betting operator, and video lottery terminal facilities eligible for an online casino license.

Following an eventful December with a dual-currency sweepstakes ban, and downstate casino licenses issued, the state may be as close as its been to legalizing New York online casinos.

What NY Online Casino Bills Include

Both bills has been referred to their respective Racing, Gaming, and Wagering Committee.

They call for the online casino tax rate to be set at 30.5% on gross revenue. While significantly lower than New York’s 51% tax on sports betting, the 30.5% rate would be notably higher than other iGaming states.

Promotions and bonus bets would not be allowed to be deducted from revenue totals prior to taxation either.

When it comes to licenses, each will be $2 million for eligible applicants. Any independent contractor looking to host an iGaming platform will face a $10 million license fee.

Should this legislation pass, it would legalize online slots, table games, live dealer, and poker tournaments.

Along with seeking online casino legalization, these bills would also see iLottery legalized.

NY Online Casinos Still Face Uphill Battle

While momentum may be growing for iGaming in New York, it still faces plenty of opposition.

The Hotel and Trades Council is a union strongly opposed to the matter. They believe online casinos would cannibalize brick-and-mortar casino business in New York. There is concern over job loss and revenue at retail casinos that would be felt if iGaming gets legalized.

In attempt to ease some concern, the current iGaming legislation calls for one-quarter of one-tenth of one percent of the taxes each year to find a program for employee training, responsible gaming training and education, health, and development. That funding total can be no less than $25 million each year.

This is the fourth consecutive year Addabbo Jr. has introduced online casino legalization bills. The state has shown more of an open mind toward the topic, but still seems far from gathering enough support to pass.

Should iGaming be legalized with 30.5% tax, it would easily be the biggest US online casino market in terms of gross revenue for operators and tax revenue for the state.

Online Casinos in New York Not Likely Until At Least 2027

While online casino discussion may be getting more serious in the state, New Yorkers shouldn’t expect to enjoy iGaming on their mobile phones until at least 2027.

Should one of these bills make the unlikely climb to legalization, it would take additional time for the roll out.

In most cases, states have taken at least a calendar year to go from legalization to an official launch.

When New York sports betting got legalized in April 2021, it still took until January 2022 before it went live for customers.

For the time being, New Yorkers can still elect to cross the border and use New Jersey online casinos if they have a desire to play legal online slots and table games.