Why New York Gambling Bill Can Revolutionise Global Casino Industry

Online casinos are booming in the USA but not yet in NY. However, this isn’t stopping investors seeking to pile cash into the state

New York’s online casino industry is still yet to get off the ground. Legislative efforts to legalise online casinos in New York have been long and arduous, and to date little progress has been made to free up the industry in the Big Apple.

However, things could be about to change following the introduction of a new bill that state legislators hope will pave the way to legal, safe casino gambling in New York.

The bill – S4856 – could be the golden ticket for casino companies, investors and gamblers. And it’s fair to say the rest of the world is watching.

Over in the US legal online casinos have been springing up ever since the federal government passed through laws in 2018. This has triggered a boom in land-based casino construction outside of the industry’s heartlands of Las Vegas and Atlantic City, and away from tribal casino monopolies.

It’s taken a long while, though, for individual states to make up their minds on online casinos. As yet, only a handful have granted firms access to their online markets. And pressure is building on New York to give the green light to this activity.

New York Online Casino Latest

New York gambling is considered a crossroads state for the global online casino industry. There are nearly 20 million people living in the state, but gamblers either have to access illegal sites to gamble online, or go to neighbouring stages like New Jersey, Connecticut and Pennsylvania.

This, it is argued, is costing New York State millions of dollars in tax revenues. And the state still has to pick up the bill for social harm inflicted by problem gambling.

It’s argued that a regulated online casino industry in New York could be the solution. The state already has regulated land-based casinos, and has authorised online sports betting.

Indeed, monthly sports betting handles in New York during the NFL season now top $1.6bn.

That’s a lot of money. And while online casino play would likely not rival the take from NFL betting, legislators, gambling firms and investors clearly see profit here. And they’ve been trying to figure out the best way to legalise online casinos in New York for about three years.

In 2022 Senate Bill 8412 tried to pass widespread legalisation for “online interactive gaming in New York State”. It got stuck in the Finance Committee and hasn’t been seen since.

Therefore, a new avenue – Senate Bill S4856 – has been introduced by New York Senator Joseph Addabbo Jr. Its aim is to add an iGaming amendment to New York’s existing racing, pari-mutuel wagering and breeding law. This would give the green light to online slots and table games in the state.

Meanwhile, another piece of legislation – House Bill 1380 – was introduced in January with the aim of legalising online poker in New York.

Will Senate Bill S4856 Pass?

The question for investors and casino companies, then, is ‘will Senate Bill S4856 pass?’. It certainly looks more likely than 8412, largely because it is a small amendment rather than widespread change.

However, the consequences would be similar and it would effectively give casino companies licence to host online slot machines, table games and even live casino offerings.

Then new law would:

• Implement a 30.5% gross gambling revenue tax
• Put money into the state lottery funds for educational aid
• Distribute $11m to responsible gaming education and treatment efforts

The bill is currently in the Racing, Gaming And Wagering Committee, which will make recommendations before taking it to the Senate floor. It will then need to get Senate and Assembly approval, before being placed in front of New York governor Kathy Hochul.

Hochul has overseen the introduction of online sports betting in New York, and it would be a surprise if she found fault with the casino amendment. Assuming she signs it off, the industry hopes to have online casino play live in New York by 2024.

Why New York Online Casinos Are Important For Investors

The prospect of online casinos being active in New York by this time next year is big news for investors. Casino investors are always looking for the next big development in the industry – and many have poured money into the American sports betting market, even though it’s currently losing millions of dollars due to marketing activities.

Sports betting in the US is expected to be profitable within the next five years, though. And the same market trend is happening with online casinos too.

What makes New York a more attractive prospect for investors compared to, say, Pennsylvania, is the sheer size and wealth of the state. Added to this a lucrative tourism market, and investors are likely to get on board with sites that launch online casinos.

And this has ramifications for the global online gambling market – because New York is such an influential player. A legalised industry here would likely lead to casino firms setting up HQs in the Big Apple, and drive technological innovation.

The industry has witnessed great leaps in innovative casino technology from hubs in London, Stockholm and Malta – but New York would take online gambling to the next level. And this is important for global investors who are looking at other emerging markets, in South America, Australasia and the South-East Asian peninsula.

Casino stocks are currently in a state of flux. The likes of Wynn, MGM and Melco Resorts have enjoyed double-digit percentage increases over the last year. But Caesars, Penn National and Bally’s have all been hit. In the UK, Flutter is performing better than last year, but Entain has seen little growth, and 888 has endured a fall.

What the industry needs post-Covid is a boost. And NY casinos can deliver that.

UK Casinos Still Top US Sites For Casino Offers

While New York and the rest of America gets to grips with online gambling, over in the UK the industry is arguably at its zenith. There are scores of top-rated casino sites regulated by the UK Gambling Commission, and technological advancements means suites both on desktop and iphone casinos are constantly being updated.

Check out the latest casino best offers today and see where your luck takes you!