NY Online Casino: When Will New York iGaming Legalize?
Just as the launch of New York online sports betting was a massive event which now involves millions of New Yorkers, the online gaming industry has its eyes on a future launch of NY online casino. There are multiple reasons why we expect New York online casino to eventually launch including the tax revenue the state of New York would expect and the cutting down on illegal and offshore igaming sites. New Yorkers could receive the benefit of enjoying online casino play under the umbrella of regulatory oversight.
Online operators that have major sportsbook businesses would benefit by the profitability that online casino brings to the operation. Considering New York has the highest tax rates in the country for legal sports betting, online casino is viewed as perhaps one of the only ways for online sportsbooks to achieve profitability levels they see elsewhere.
What is the estimated tax revenue that NY Online casino would bring to the state? A recent study by Vixio in conjunction with Light & Wonder estimates that annual tax revenues to New York would range from $575 million to $1.1 billion each year. The genesis for this estimate is by looking at the over 15 million adults in the state of New York, making assumptions around the gross gaming revenues that would be expected by comparing to other legal states’ GGR and then putting forth a range of tax revenues when looking at the various existing tax rates (NJ, MI, PA). Simply put, this tax revenue would be significant to New York. Considering the state has a budget shortfall each year, we expect support to increase for this legislation in the years ahead.
Latest NY Online Casino News
January 2024: iGaming Bill not included in Governor Kathy Hochul’s 2025 budget. By not including references to taxes from legalized online casino, it is assumed in New York that there is not broad enough support to pass such legislation this year. [NYS Budget]
December 2023: NY State Senator Joseph Addabbo Jr. and Assembly member J. Gary Pretlow pen op-ed voicing support for legalization of NY online gaming. “We are working on legislation to authorize iGaming and iLottery in New York, and we are optimistic that this session, we can turn it into law. The bill uses the same framework in place for mobile sports betting, allowing consumers to safely play in a legal and regulated market while generating a projected $1 billion annually for New York, above and beyond what the state already receives from mobile sports betting.” [City & State New York]
February 2023: Senator Joseph Addabbo Jr. introduces Senate Bill S4856 for legalization of online casino in NY. Addabbo’s bill suggests that online casino operators would face a 30.5% tax on casino related revenues as compared to the 51% tax rate on mobile online sports betting.
New York Downstate Casinos
As part of the 2022 New York budget, three licenses for downstate brick-and-mortar casinos are said to be available. Downstate refers to the areas of New York State that include New York City, Long Island and more.
NY Senator Joseph P. Addabbo just released a statement praising NY Gov. Kathy Hochul's inclusion of three downstate casinos in the state's executive budget.
— RLinnehanXL (@RLinnehanXl) January 18, 2022
Since this news broke, there has been talk of one or more casinos being built in Manhattan. Time Square has been noted as a possible destination. Recently, news of a possible Hudson Yards casino was also mentioned.
Wynn today released the latest video animation rendering of its proposed Hudson Yards New York City casino project; this is one of roughly a dozen proposals for a NYC downstate casino license; the project faces opposition from local leaders
(video via Related Companies & Wynn) pic.twitter.com/7egBhnfmT5
— Ryan Butler (@ButlerBets) August 28, 2024
Company will have to purchase a $500 million license fee and be willing to invest a minimum of $500 in capital investment into the project.
Despite the promise of new gaming venues in New York City and elsewhere, the process has been bogged down for multiple years leading to frustration. Despite two years having passed since the announcement, the state has made little progress identifying partners and locations for possible casinos.
Why does this matter for online casino legalization in New York? It is said that Governor Hochul wants the downstate casinos issue resolved before any further consideration of online gaming legislation.
Common Questions
Can you play online casinos in NY?
Currently, online casino is not legal in New York. This includes online slots, online table games and other offerings that are typically of online casino play.
Is DraftKings casino legal in NY?
New Yorkers can be on sports through DraftKings, but because online casino is not legal in NY, users will be restricted from casino play within the DraftKings app.
Is FanDuel casino legal in NY?
FanDuel online casino is not legal and not available for New Yorkers. Users can bet on sports within the FanDuel app while located in New York.
Can NY residents bet online?
New York residents can be on sports online through the licensed online sports operators such as FanDuel, DraftKings, BetMGM, Caesars and Fanatics Sportsbook. Users must be located in New York at the time of placing a wager. Wagering is limited to sports (online casino is not available in NY).
Is there a timeline for when online casino will be legalized in NY?
Unfortunately, there is not an estimated timeline for online casino legalization in the state of New York. As the state enters its legislative session for next year, we will see if the governor and other influential legislators include support for igaming legalization. It is expected that the state will legalize online gaming at some point as a result of missing out on tax revenues.