State Senator Joseph Addabbo has officially introduced legislation to authorize New York online casinos for the 2026 legislative session, marking his fourth consecutive year championing the expansion of digital gaming. Senate Bill S02614 seeks to establish a regulated framework for real-money iGaming and online lottery sales, aiming to capture revenue that currently flows to neighboring states or unregulated offshore markets.
The bill arrives at a critical juncture for the gaming industry in New York. State regulators recently concluded a lengthy process to award three downstate casino licenses to projects in the New York City region. Addabbo, who chairs the Senate Racing, Wagering, and Gaming Committee, believes the completion of that land-based expansion removes a major legislative distraction and clears a path for serious discussions regarding New York online casinos.
Under the proposed legislation, the state would implement a tax rate of 30.5 percent on gross gaming revenue from online casino activities. While this rate is lower than the 51 percent tax currently applied to mobile sports betting, it remains significantly higher than the rates found in existing markets like New Jersey and Michigan. The bill also mandates an initial licensing fee of 2 million dollars for eligible operators and a 10 million dollar fee for independent platform providers.
A key component of the push involves addressing opposition from labor groups. The New York Hotel and Gaming Trades Council has previously voiced concerns that online gaming could cannibalize revenue from brick-and-mortar facilities and threaten union jobs. To mitigate these concerns, Addabbo’s proposal includes a dedicated fund for employee training and workforce development. This fund would receive a minimum of 25 million dollars annually, sourced from iGaming tax proceeds.
Supporters of the measure highlight the fiscal benefits, noting that mobile sports betting has generated nearly 4 billion dollars in tax revenue since its 2022 launch. They argue that New York online casinos could provide a similarly robust stream of funding for the state budget and public education. However, the proposal still faces hurdles, including the need for a companion bill in the Assembly and formal support from the executive branch. If the legislation is successful this year, industry experts suggest a regulated market could begin operations as early as 2027.
