In the dynamic landscape of New York's fast-growing online gambling market, Senator Joseph Addabbo took a bold leap towards further expansion of gaming by filing a new bill, the S8185. Aimed at fostering the growth of online casinos, the newly proposed bill also seeks to expand iGaming and integrate online lottery into the thriving gambling portfolio of New York. Against the backdrop of the Empire State evolving into the largest online gambling market in the United States (US) since January 2022, the bill proposes a number of key provisions that not only pave the way for additional gaming licenses but also emphasize principles of diversity, equality and inclusion (DEI) in the process of licensing.

The S8185 legislation mirrors a similar bill introduced in 2023. Mirroring the previous version, the new bill maintains its commitment to propel the online gambling sector forward. A pivotal aspect of the bill involves designating eligible applicants for specific licenses, with a special focus on the highly competitive downstate casinos and forthcoming upstate casinos awaiting regulatory decisions. Particularly, VLT parlors such as MGM Empire City Casino, Resorts World NYC, New York’s various Native American tribes, and multiple existing online sports betting operators have been identified as eligible entities to operate casinos in the state.

In a departure from the previous 5 per cent minority ownership requirement, the new bill focuses on the principle of DEI. Eligible applicants would be directed to adhere to an affirmative action program, approved by the gaming commission, which outlines specific goals for the utilization of minorities, women, and veterans in full-time, permanent jobs at the interactive gaming license’s place of operation.

It further introduces the possibility of three additional gaming licenses, which will be issued through a competitive bidding process. This is reportedly to inject more potency into the ever-expanding market. To get a license, operators are required to pay an upfront fee of $2 million. Out-of-state platform operators would face a higher fee of $10 million. Additionally, all operators must contribute a 30.5 per cent tax on gambling operations to maintain eligibility.

The collected gaming tax revenues will be utilized towards responsible gaming programs & employee training. With an aim to foster responsible gaming behavior, the bill proposes 0.025 per cent of annual tax revenue for these purposes, subject to an obligatory $25 million threshold requirement.