New bill aims to make online casinos legal in New York
New York lawmakers have introduced a new bill that pushes for the state to officially legalize regulated online casinos, which could potentially bring gambling to the desktops and mobile devices of players across the region and introduce a fresh stream of tax revenue for the US state.
Many players now prefer online casinos over physical ones because of their convenience, but many US states remain on the fence about legalizing and regulating them. New York offers multiple physical casinos where players can bet, but legal digital alternatives don’t yet exist. This has pushed players towards offshore and unregulated online casinos, which is both a risky proposition for players and a potential loss of income tax for the state.
New York has tried to legalize online casinos multiple times, but those past bills haven’t passed. The state is now attempting to pass another bill that aims to introduce legal online casinos to the state of New York.
New York bans sweeps, looks to legalize online casinos
Sweepstakes were one of the alternatives New York residents could use to circumvent the state’s existing ban on online casinos. This workaround was, however, banned in New York in December 2025, leaving players reliant on physical casinos or unregulated alternatives.
Senator Joseph Addabbo Jr. has now introduced bill 2614 that proposes to legalize state-regulated online casinos and lotteries to work around this issue.
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Bill 2614 aims to implement a framework that authorizes iGaming, including online slots, table games, poker, and live dealer games. Operators would be limited to already licensed entities, such as tribal and commercial casinos, video lottery facilities, and other licensed sportsbooks.
Licensing fees will be significant, an estimated $2 million for casino operators and $10 million for independent platforms. These licenses would last up to 10 years, with the option for renewal. Taxes will reportedly be set at 30.5%, which is significantly higher compared to some other US states, including nearby New Jersey, and could deter some operators from entering the new market even if it were to be approved.
The bill proposes multiple safeguards to protect players, including account verification, wagering controls, and dedicated funding for problem gambling programs. There would also be payment restrictions and labor requirements to ensure operators promote responsible gaming.
This isn’t the first time Addabbo has tried to get New York to pass an online casino bill, as the senator has been promoting it since the state legalized mobile sports betting. He has been unsuccessful for multiple years, but there is speculation that he may succeed this time.
New York is also reportedly further regulating sports betting and may ban live wagers, so it’s possible lawmakers legalize online casinos as an alternative for players.
Industry analysts have estimated that online casinos can generate between $1.5 billion and $3 billion in annual tax revenue once a market fully matures. These figures are consistent with other US states like Pennsylvania, and would be even more viable with New York’s larger population. Supporters of the bill argue that the state of New York would benefit greatly from these revenues, as the taxes generated would be significantly higher than those generated from mobile sports betting alone.
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Khizar Mundia has been playing video games for as long as he can recall. Things have come a long way since the many days he spent playing the original NES, though. He now covers a variety of competitive games and esports, as well as the world of streaming, ranging from Twitch to Kick. If it’s of interest to gamers, it’s of interest to Khizar.
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