NY Legislators Want iGaming to Tackle Budget
Lawmakers in New York are taking action to address the budget deficit by advocating for the legalization of iGaming and iLottery. State Senator Joseph Addabbo and Assemblyman J. Gary Pretlow, who hold gaming committee chair positions in Albany, believe that incorporating online gambling and lottery games into the state’s economy could generate over $1 billion in annual tax revenue. They argue that neighboring states like New Jersey, Pennsylvania, and Connecticut are already benefiting from iGaming and it’s time for New York to join in.
Supporters of the legislation point to the success of iGaming in other states, especially New Jersey, where operators reported $1.66 billion in gross gaming revenue in 2022. Reports show that states with legalized iGaming have seen an increase in tax revenue without harming physical casinos. Lawmakers in New York argue that iGaming does not threaten traditional casinos and could actually help with funding shortages.
Legalizing iGaming and iLottery could also provide financial resources for education and sports programs for underserved children. With a projected budget deficit of $4.3 billion in 2024 and $8 billion in 2025, the revenue from online gambling and lottery games could help alleviate the strain on New York’s finances.
The success of online gambling in New Jersey makes a strong case for legalization in New York. The state taxes iGaming gross gaming revenue at 15% and online sports income at 13%, resulting in significant tax revenue. Tax revenue from sportsbooks in New Jersey alone reached $92.9 million.
New York lawmakers believe that legalizing iGaming and iLottery could generate a comparable or greater amount of tax revenue. They argue that online casinos, including slot machines and table games, are more profitable than online sportsbooks. They also advocate for the New York Lottery to offer online games and ticket sales, expanding the potential revenue stream.
Opponents of iGaming legalization claim it could harm physical establishments. However, New York lawmakers counter this by pointing to the success of neighboring states with legal iGaming. They argue that there is no evidence that online gambling negatively affects traditional casinos.
In an op-ed, Addabbo and Pretlow stress the importance of legalizing online slot machines, table games, and lottery products. They believe that this would be a step towards addressing the budget deficit while preserving physical establishments’ integrity.
Addabbo and Pretlow plan to introduce the legislation during New York’s legislative session from January to June. Their previous success in legalizing sports betting and online wagering in the state positions them as key figures in shaping New York’s gambling landscape.
With neighboring states already benefiting from iGaming, New York lawmakers see the legalization of online gambling and lottery games as a crucial step to address the budget deficit. They argue that it could generate significant tax revenue, fund important programs, and have no negative effects on physical businesses. All eyes will be on Albany to see if New York follows its neighbors and embraces online gambling.
