Is New York Legalizing Online Gambling?

As one of the most populous states in the USA, we often come across the question: “is New York legalizing online gambling?” While the state has made some moves toward a regulated online betting market in recent years, it remains to be seen how it will fare with online casinos. We’ve discussed this topic in depth in this guide.

Before we’ve touched on online gambling restriction in New York, we’ve looked at how online sports gambling New York is taking shape. By looking at this, we can make some strong deductions about how an expanded gambling market could operate and whether its potential for earnings could inspire lawmakers to act.

From there, we’ve looked at the state’s other current online gambling laws, before looking at the history of gambling in the state. We’ve rounded out this guide with a discussion on land-based gambling in NY before discussing what experts expect from a potential expanded online gambling market in the state.

• Online Sports Gambling in NY
• Other Online Gambling Laws
• New York Gambling History
• Land-Based Gambling in NY
• Market Predictions

The Current Online Sports Gambling New York Laws

The path to New York legalizing online gambling can be traced back to 2013 when the state authorized sports betting in its land-based casinos. However, due to the federal ban, it wasn’t until 2019 that the state could accept in-person wagers. Unfortunately, there was no law yet that permitted online gambling.

This changed when lawmakers passed the allowance of online betting in the state budget bill in 2021. By January 2022, New York began to accept legal sports bets online. There are now nine betting platforms that cater to the state’s sports fans, including BetMGM, Caesars, BetRivers, and FanDuel.

This was an important step for the state to make due to its proximity to New Jersey. Many residents who lived near the border were found to be crossing state lines to make wagers from their mobiles. Over time, this could amount to billions in lost revenue, so it makes sense why lawmakers were so quick to act.

Currently, locals are able to wager on everything from local major league sports to international leagues and divisions. It’s also possible to bet on college sports, though bets on events with New York college participation are restricted. Sports betting is available for anyone over the age of 21 years old.

Other Online Gambling Laws in New York

Despite its progress in online sports gambling New York has yet to make any major strides when it comes to online casinos. However, there are still several other legal online gambling options that residents and visitors can enjoy. We have discussed these different gambling sectors in detail below.

Online Casinos

Despite strong hopes that online casinos could be legalized in New York by the end of 2023, the momentum for such progress was recently shot down. The only bill introduced to expand online gambling for casino play was introduced in February by state Assemblyman Joseph Addabbo.

The bill would allow the state’s retail casinos to partner with two operators, which could see 14 online casinos launched. This is a similar requirement for the state’s sports betting platforms. The bill was being considered by the Standing Committee on Racing and Wagering before being suggested in budget legislation.

However, the following month, the budget proposals were announced with no intention to legalize online casinos. This means that there will be no progress on the matter until at least 2024. Although the news is quite disappointing, it appears that no states are set to legalize online casinos this year.

Despite this fact, there is still much hope for legal online casinos in the Empire State. Several lawmakers are adamant that it’s a matter of time before legislators progress on the matter. The revenues are just too good to ignore, with sports betting already generating millions for state coffers each year.

If online casino gambling in New York state was expanded to include online casinos, locals could expect to play online slots, roulette, blackjack, and live dealer games from their desktops or mobile devices. As we’ve seen in states such as New Jersey and Pennsylvania, the sector is extremely lucrative and popular.

Online Poker

Shortly before Assemblyman Addabbo’s bill to legalize online casinos was introduced in February, Assemblyman J. Gary Pretlow introduced a bill that would see online poker games classified as a game of skill. This would then render it a legal gambling option. However, this too was passed by state legislators in this year’s budget proposals.

Like online casino gambling, progress on the matter will need to wait until the 2024 session. It was hoped that online sports gambling New York platforms such as BetMGM could also provide online poker portals. In time, residents could likely play single cash games and tournaments against players in other states.

DFS and Horse Race Betting

One early step to New York legalizing online gambling came in the form of daily fantasy sports. While many still debate whether DFS is technically gambling, this activity was officially deemed constitutional in New York in March 2022. Prior to that, daily fantasy sites had been operating in a legal gray area.

Another legal online gambling option that has long been accepted in New York is pari-mutuel wagering on horse races. In fact, this is one betting option that is available online in most US states despite the long ban on online sports betting. You can wager at several off-track betting websites legally.

Online Lottery

Currently, the New York laws on online gambling have yet to expand to allow online lottery ticket sales. This isn’t exactly rare, with only seven states allowing online sales of lottery tickets. It’s surprising that there hasn’t been any progress in the state though, as lottery sales are huge in NY.

In states where there are online lottery options, players are able to play digital gambling games such as scratch-offs and even slot-like machines. Lottery ticket sales go toward funding social programs in NY, and players must be over 18 years old to participate in draw games.

New York Gambling History

New York has a long and rich history when it comes to gambling. Before they were banned in the 1800s, lotteries and small-scale casino gambling were prevalent in the city’s bars. While the city failed to change its stance for over a century, an underground betting market developed and thrived.

In the early 1900s, four race tracks that had previously been shut down reopened and began to legally accept pari-mutuel wagers. In 1958, the New York Racing Association was established to provide a more stable industry. The next major move came in 1967 when the state launched its official lottery.

It remains one of the largest in the nation, with revenues exceeding $8 billion in 2021. Roughly half of this went toward funding state Education programs. Shortly after in 1970, off-track betting on horse races was legalized. This was done to combat the illegal sports betting market that had flourished in the state.

The horse racing industry has always been the backbone of New York’s gambling market, so much so that racinos were established in 2001 to improve revenues. The New York Legislature approved the offering of video slots at racetracks, and there are now nine racinos across the state.

These racinos also offer expanded gambling options such as poker. In 2013, New York legalized Vegas-style gambling at four commercial sites. Before then, expanded gambling could only be offered on Native American lands. Since then, locals have been able to play everything from roulette to blackjack at these casinos.

In 2019, sports betting at retail locations was approved by the state. In 2021, the laws were adapted to approve online sports gambling New York websites. The market has been incredibly successful and profitable for state covers due to the fact that there’s a 51% tax on mobile betting. It is set to generate over $1 billion in taxes in 2023.

Land-Based Gambling in NY

While the online gambling market in New York still has some way to go, its land-based gambling market provides all that you could want. There are four commercial casinos in upstate New York. These include the del Lago Resort & Casino, Jake’s 58 Hotel & Casino, the Rivers Casino & Resort, and the Tioga Casinos.

You’ll also find nine racinos and a number of Native American casinos. These offer a selection of slots, table games, and poker, as well as sports betting, horse race betting, and off-track betting. It is worth mentioning that those near the New Jersey border are legally able to cross state lines and play online casino games from their mobiles.

Market Predictions

There have been recent studies into the impact that online casinos could have on the local economy, with some experts believing that more than $3 billion could be generated in its first year. If a 50% mobile gaming tax was applied to this, this could amount to an additional $1.5 billion in taxes for the state.