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New York Casino Employees Declare War on Online Gambling Bill (Sponsored ad)

The bid to legalize online gambling in New York has reached its feverish moments. A win here would mean everyone could play their favorite casino games from the comfort of their homes. 

However, not everyone would be pleased with this outcome, especially brick-and-mortar casino workers. They believe that the new bill to legalize online casinos would threaten their job security and shake the foundation of New York’s gaming empire. In this article, we’ll carefully examine the New York online gambling bill, its prospects, drawbacks, and how it will shape the future of gambling in the state.

Overview of The New York Online Gambling Bill

What exactly is contained in the new bill, and how does it tackle the challenges that led to the failure of a similar bill in the last session? That was the question on everyone’s mind as Sen. Addabbo, a vocal proponent of online gambling since 2019, stepped up again to introduce the S8185 online casino gambling bill. The bill proposes a 30.5% tax rate for online casinos, lower than the 51% tax rate for online sports betting in New York. 

Sen. Addabbo argued that legalizing online gambling is inevitable as the gaming industry continues to evolve, citing examples of neighboring states like Pennsylvania, New Jersey, and Connecticut, which have already embraced iGaming and are enjoying its economic benefits. 

Another supporter of the bill, Howard Glaser, the head of global gaming affairs at Light & Wonder, told Legal Sports Reports that New York is missing out on billions by leaving the online gambling market to illegal operators. It’s interesting to note that New York currently faces a shortfall of $4.3 billion in its budget, a gap online gambling advocates believe will be filled by the new bill.

Who Opposes The Online Gambling Bill and Why?

Given the new bill’s highlighted prospects, one might wonder if it would face any opposition. But, of course, it does. Employees at brick-and-mortar casinos are on the frontline of opposition to the bill. They claim the bill is a direct assault on the gaming industry, believing it would leave brick-and-mortar casinos empty. In a letter written by the labor union, they highlighted how land casinos support the dreams and livelihoods of many and how the bill undermines this. 

Bhagwan Tibrewal, the union’s political director, promises to fight Sen. Addabbo in this fight. This is coming even as the bill sets aside an annual $25 million to support employees at New York’s land casinos.

Benefits and Drawbacks of Legalizing Online Gambling Bill in New York

What if the bill eventually passes through the opposition’s hurdles? What does that mean for gambling in the Empire State?

  • Increase in Tax Revenue

This is a big one. Following the model of online sports betting, which has brought in significant revenue since its legalization in 2022, online casinos could be a new source of tax income for the state. The bill proposes a 30% tax rate and a $2 million licensing fee. Addabbo believes this could bring in $1 billion in annual revenue for the state, helping to solve the state’s projected budget deficit, which is set to worsen by 2025.

  •  Provide Job Opportunities

While many are scared of the impact of online casino gambling on existing jobs, it is also set to create job opportunities. New job opportunities will be created to manage online casino operators’ operations and regulations. 

Currently, online casinos available in New York operate from offshore locations . Legalizing online gambling will attract these operators to the state and open many job opportunities for residents.

  • Combat Illegal Gambling

As Addabbo and other proponents of the online gambling bill argue, countless New Yorkers are already engaged in iGaming. They only do it illegally in offshore sites, some of which may be shady. Legalizing online gambling will help attract these gamers to legal state operators and increase the state’s revenue streams.

  • Challenge of Problem Gambling

Part of the argument against legalizing online casino gambling in New York is its potential to increase the rate of problem gambling in the state. This is undoubtedly a problem worth considering by the proponents. Sen. Addabbo noted this as an issue as well and pointed out that the $11 million set aside to tackle problem gambling annually in the bill will go a long way in furnishing the New York Council on Problem Gambling (NYCPG) with the resources it needs to tackle problem gambling annually.

  • iGaming Threat to Existing Jobs

The push against online gambling is majorly due to wiping out existing jobs in the gaming industry. Who would embrace a move they suspect would deny them their means of livelihood? 

However, the bill has a special consideration to set aside $25 million to train and support casino employees, ensuring they remain relevant in the industry.

  • Regulatory Challenges

Another major drawback of the bill is the regulatory hurdles it is expected to surmount. This is mainly because the state faces drudgery in licensing downstate casinos. 

Sen. Addabbo hopes Governor Kathy Hochul will take the initiative to support legalizing online gambling in the state. However, implementing the necessary regulatory systems after passing the bill might take much longer than anticipated.

Frequently Asked Questions (FAQs)

  • When Might Online Casinos Become Legal in New York?

There have been talks about legalizing online casinos in New York, but a definitive timeline still needs to be determined.

  • What Types of Games Could be Offered at Online Casinos in New York?

This would depend on the specific regulations but could include slots, table games (blackjack, roulette, poker), and online sports betting.

  • Are there other exciting things to do in New York besides iGaming?

There are many ways to enjoy your time in New York. Iconic places like the Hudson Valley offer several fun activities.

Online Gambling and Job Security: Is There a Truce In Sight?

Bricks-and-mortar casino employees are indeed not ready to give in to the baits of online gambling. However, actors on both sides are expected to conclude that would ultimately help the New York bettor witness an era where he could gamble in the state legally from anywhere with an internet connection.