Online Gaming Legislation in New York Faces Uncertainty
The latest developments in New York's legislative landscape have cast doubt on the future of online gambling within the state. Notably, Senator Joseph Addabbo Jr.'s iGaming bill did not make it into Governor Kathy Hochul's proposed budget for 2025. The absence of this bill from the budget suggests that the governor may not back the legislation during the current 2024 session.
The iGaming bill under scrutiny proposes a tax rate of 30.5% on revenue generated from online casino activities. This comes after the inclusion of online sports betting in the state's 2022 budget, which carries a significantly higher tax rate of 51%. Proponents of the bill argue that legalizing iGaming could be a boon to the state's economy, potentially increasing profits and helping to mitigate budget shortfalls.
There is a growing concern that New York might miss out on substantial revenue if iGaming remains unregulated. Without the legalization of online gaming, funds could continue to flow out of state or into the hands of illegal operators. As neighboring states embrace the industry, New York risks being left behind, losing potential income that could support public services such as education.
Lobbyist Perspectives on the iGaming Bill
Despite the potential economic benefits, industry lobbyist Steve Brubaker has expressed skepticism about the bill's chances of passing. He points out that companies interested in obtaining a license may have to divest certain interests, which could complicate their entry into the market. Moreover, there are concerns that last year's legal language might have been altered to favor particular industry players, indicating that lobbyists frequently shape legislation to benefit specific companies.
Brubaker's comments shed light on the intricate dynamics of lawmaking, where amendments can significantly influence the competitive landscape. "Seems like a very light touch for Evolution. Has me thinking that last year’s L&W language was replaced with more favorable language by Evo or by the casino companies who use them," he remarked. This statement hints at possible changes in the legal framework that could have implications for companies like Evolution Gaming, which specializes in live dealer games.
"You see bills ‘legislating market share’ all the time. It is the primary reason lobbyists exist," Brubaker added, emphasizing the role of lobbyists in shaping policy to advantage their clients. His insights suggest that the outcome of the iGaming bill will not only impact New York's economy but also the balance of power within the gaming industry itself.
Furthermore, Brubaker anticipates that even if the bill does not pass, the debate surrounding it could lead to amendments that alter its direction or focus. He notes, "While I do not see this bill passing, it will be interesting to see amendments that may be added to change the direction or focus of what is a battle for control of live dealer." This battle for control underscores the competitive stakes involved in the regulation of online gaming.
The Economic Implications for New York
The ongoing discussion around the iGaming bill has significant ramifications for New York's economy and the gaming industry at large. Legalization proponents, including Sen. Addabbo and Rep. Pretlow, stress the urgency of capturing revenue that is currently being lost. They argue, "At a time of fiscal distress for our state, we cannot continue to allow hundreds of millions of dollars to be funneled into neighboring states or into the pockets of disreputable companies—particularly when those funds could be used to further bolster funding for public schools or other worthy services."
This sentiment captures the broader issue at stake: the allocation of resources and the state's ability to fund essential public services. With the future of online gambling in New York hanging in the balance, the decisions made now will have long-lasting effects on the state's financial health and regulatory environment.
In conclusion, while the fate of the iGaming bill remains uncertain, its significance cannot be overstated. As legislators, lobbyists, and industry leaders continue to navigate the complex terrain of online gambling regulation, all eyes will remain on New York as a pivotal battleground for the future of digital gaming in the United States.