Assessing the Future of iGaming in New York
In a surprising turn of events, Senator Joseph Addabbo Jr.'s iGaming bill has been notably absent from Governor Kathy Hochul's 2025 budget proposal. This omission signals potential challenges ahead for the legalization of online gaming in New York, despite the bill's intent to establish a 30.5% tax on online casino revenues.
As the 2024 legislative session unfolds, there are growing concerns that Governor Hochul may not throw her support behind this piece of legislation. This development is particularly noteworthy given the state's previous decision to include online sports betting in the 2022 budget, which came with a hefty 51% tax rate. The inclusion of sports betting was seen as a progressive step towards embracing digital forms of gambling and generating significant revenue for the state.
Proponents of legalizing iGaming argue that it could serve as a boon to state profits and offer a solution to budget shortfalls. Without the legalization of iGaming, New York stands to lose money to neighboring states where such activities are legal, or worse, to illegal operations that operate outside the purview of state regulation.
Despite these arguments, industry lobbyist Steve Brubaker has expressed skepticism about the bill's chances of passing. He points out that companies interested in entering the market might be required to divest certain interests before they can apply for a license, should the bill eventually pass. This requirement could present a considerable barrier to entry for some entities.
There is also speculation that last year's legal language surrounding the iGaming bill may have been altered to benefit specific players within the industry. Brubaker suggests that such changes could have been made to favor Evolution Gaming (Evo) or the casino companies that utilize their services. This notion underscores the influence that lobbyists often exert on legislation, shaping it to advantage particular companies.
Brubaker's insights reveal a broader trend where bills are crafted to 'legislate market share,' serving as a testament to the primary function of lobbyists in legislative processes. The strategic manipulation of legal language to secure favorable conditions for certain businesses is a common practice, though one that raises questions about fairness and competition.
The uncertainty surrounding the future of online gambling in New York remains high. The outcome of the iGaming bill will have profound implications for the state's economy and the gaming industry at large. As lawmakers continue to debate the merits and drawbacks of such legislation, stakeholders from various sectors are keenly observing the developments.
Voices from the Legislature and Industry
Senator Addabbo, along with Representative Pretlow, has emphasized the fiscal urgency of legalizing iGaming in New York. They highlight the potential loss of hundreds of millions of dollars to other states or illicit operations, funds which they believe could instead support public education or other valuable services.
Brubaker, however, maintains a critical stance. His commentary sheds light on the intricacies of the legislative process, hinting at the possibility of Evolution Gaming or casino companies influencing the bill's language to suit their ends. "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 remarks, suggesting a shift in the bill's wording that could have tilted the scales in favor of these entities.
He further elaborates on the role of lobbyists in shaping legislation, stating, "You see bills ‘legislating market share’ all the time. It is the primary reason lobbyists exist." This candid acknowledgment reflects the realpolitik of lawmaking, where vested interests often drive the direction of policy.
Despite his doubts about the bill's success, Brubaker acknowledges the dynamic nature of the legislative process: "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."
In conclusion, the stakes are high as New York contemplates the next steps in its approach to iGaming. With potential revenue on the line and the power plays of industry influencers in the background, the path forward is fraught with complexity. As the discussion continues, all eyes remain on the evolving landscape of online gambling in the Empire State.