A bill to legalize iGaming presented to the New York Senate
New York’s online sports betting market is booming, and state legislators are looking for similar success in the interactive gaming (iGaming) sector.
Senator Joseph P. Addabbo Jr.one of the driving forces behind the legalization of online sports betting in New York, presented Bill S8412 in the New York Senate on Thursday to legalize iGaming in the Empire State.
iGaming table games, slot machines a possibility
If approved, licensed online casinos and operators will be able to offer certain iGaming slots and table games on their specific platforms. The bill sets the iGaming tax at 25% and specifically notes that “promotional gaming credit will not be taxable for purposes of determining gross interactive gaming revenue.”
The Empire State’s online sports betting tax rate is 51% and promotional play is taxed on gross sports betting revenue.
According to the bills’ summary, New York would receive about $475 million a year in state tax revenue. In the first year of operation, the state would receive approximately $150 million in one-time licensing fees from casinos, operators, and independent contractors who wish to conduct iGaming online.
Can NY be a leader in iGaming?
Each casino or operator approved for online iGaming will pay a one-time fee of $2 million. Any independent contractor supplying an operator’s online iGaming betting platform and displaying its brand will have to pay a one-time fee of $10 million.
New York sees itself as an industry leader soon after its launch. According to the bill, in 2021 online casino gaming revenue exceeded $1 billion in New Jersey and Pennsylvania, which translates to approximately $120 million in tax revenue for the two states.
New York quickly became the leader in online sports betting in its first month of operation, generating nearly $70 million in tax revenue for the state. If allowed, lawmakers believe New York’s iGaming market could lead the nation as well.