New York is the nation’s mobile sports betting mecca, but lawmakers have yet to embrace legislation for the more lucrative iGaming, or online casino gambling. However, many believe it is not a question of if but when.
Betting Bonanza
Mobile sports betting in the Empire State has been an unmitigated success, but it is not all that surprising considering its population of nearly 20 million and home to a rabid fanbase featuring several storied professional sports franchises, most notably the New York Yankees.
Launched in January 2022, the numbers continue to grow, and last year was the biggest yet, generating $2.05 billion in revenue for the state’s nine mobile sportsbooks. Due to New York’s national high tax rate of 51%, the state reaped over $1 billion in tax revenue in 2024, which was 50.8% higher than 2022 and a 20.8% hike over 2023.
However, as lucrative as sports betting is, iGaming has proven to generate an average of three times the revenue. For example, last year in neighboring New Jersey, online casino gaming generated $358.3 million in tax revenue, while online sports betting produced $138.3 million.
Speaking of the Garden State, those in New York must cross state lines if they want to play virtual slots or table games, which is another argument iGaming proponents in New York are using to facilitate its arrival. In other words, neighboring New Jersey is getting money that should rightfully be staying in New York.
Online Casino Push
The lawmaker at the vanguard of New York’s expanding gaming footprint is Senator Joe Addabbo, Chairman of the Senate Racing, Gaming, and Wagering Committee. Addabbo was the driving force that made digital sports betting a reality, and he has already sponsored an iGaming bill this session that remains in committee.
Yet, even Addabbo is under no illusions regarding the prospects for a successful end to his legislation this year. Governor Kathy Hochul has been indifferent to Addabbo’s legislative entreaties, and she doesn’t appear to have the appetite for entertaining iGaming legislation, at least not this year.
“It has to be the governor who drives the bus,” Addabbo said. “I’m not very hopeful this session because it can’t just be me. I need the governor to engage, and she doesn’t want to engage.”
Later this year, Missouri will be the 39th state, plus the District of Columbia and Puerto Rico, to offer sports betting in some form, and more states, including Hawaii, an anti-gambling stronghold, are contemplating it.
iGaming’s Hard Sell
The warm embrace most states have had for sports betting has been quite the opposite for iGaming, despite its greater financial appeal. Lawmakers and anti-gambling groups have expressed grave concern regarding the spread of gambling addiction that easy-to-access, 24-hour digital casinos would provide.
Many land-based casino owners have also expressed opposition, arguing that the convenience of internet casino gambling will cannibalize their in-person casino business. Unions whose members work at those casinos have also expressed concerns about the potential job losses that iCasinos could cause.
However, budget deficits need revenue streams to solve them, which is why New York lawmakers will likely follow the lead of the seven other iGaming states (New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island) sooner rather than later.
