New York State Senator Joseph Addabbo has introduced legislation for a fourth consecutive year to legalize real-money online casino gaming, renewing efforts to bring iGaming to the state as lawmakers begin a new legislative session.
Addabbo filed Senate Bill S02614, identical to last year’s proposal, which would legalize online casinos and online lottery sales. The bill has again been referred to the Senate Racing, Wagering, and Gaming Committee, which Addabbo chairs. A companion measure, Assembly Bill A06027, has been introduced by Assemblyperson Carrie Woerner.
The renewed effort comes after last year’s bill failed to advance while New York focused on awarding three downstate casino licenses. Those licenses were granted to Bally’s, Resorts World, and Hard Rock, each of which paid a $500 million license fee, generating $1.5 billion for the state.
Addabbo, who played a central role in legalizing mobile sports betting in New York, said the completion of the casino licensing process allows lawmakers to revisit iGaming in 2026.
The legislation seeks to address concerns from brick-and-mortar casinos over potential cannibalization by directing 0.025% of iGaming tax revenue to a dedicated fund for employee training, responsible gaming education, health, and development. The fund would receive at least $25 million annually.
Under the proposal, iGaming operators would be taxed at a rate of 30.5% of gross gaming revenue, with proceeds outside the dedicated fund directed toward education. The rate is higher than New Jersey’s 19.75% tax, slightly above Pennsylvania’s near-30% effective rate, and above Michigan’s sliding scale of 20% to 28%. It is, however, significantly lower than the 51% tax rate paid by New York’s mobile sportsbooks.
“Most items in my bill are a starting point,” Addabbo told Gambling Insider.
Mobile sports betting has generated $996.8 million in receipts in the first nine months of the current fiscal year and is tracking ahead of the $1.2 billion estimated in the enacted 2026 budget. Since launching in 2022, sports betting has generated nearly $4 billion for the state.
The bill’s prospects depend heavily on Governor Kathy Hochul, who has not included iGaming in previous budget proposals and is running for re-election. Hochul is expected to outline her priorities in an upcoming State of the State address, which lawmakers view as an early signal of whether iGaming could be considered as a revenue source.
“But in the end, if the governor doesn’t want the revenue, if the governor doesn’t want to help people with addiction, if the governor wants to still see our money go to another state, then we don’t do it,” Addabbo said. “I don’t know what rational governor would want to do that.”
Addabbo has framed the proposal as a fiscal measure aimed at addressing New York’s multi-billion-dollar budget deficit. The bill includes upfront license fees of $2 million for casino, video lottery terminal facility, or operator entities, and $10 million for third-party platform providers.
“This is purely a fiscal item,” Addabbo said. “We can get upfront money in this budget with license fees. I’m looking to help the state fiscally.”
While Addabbo said he is “more optimistic than confident” about securing the governor’s support, he acknowledged that negotiations could alter the final bill, noting that the state’s 2021 sports betting law included only about two-thirds of its original language.
“The final product may look a little different,” he said. “Let’s start the conversation. Let’s figure out how to navigate this forward.”
Hochul last month signed legislation banning online sweepstakes casinos in New York.
Original article: https://www.yogonet.com/international/news/2026/01/13/117102-new-york-senator-addabbo-renews-push-to-legalize-online-casinos-for-fourth-year
