March 10, 2022
This week’s gaming news focuses on the expected growth of online gambling in the United States, and in particular the expansion of regulated online casino games. Why are online betting and casinos about to explode now? And what got us to this point?
Just two months after the record launch of mobile sports betting, the expansion of online betting in New York via casino games is proposed in new legislation. Well, that didn’t take long, did it?
The political force behind the bill regulating mobile sports betting, State Senator Joseph Addabbo, is now proposing a new bill to do the same for online betting in casinos. However, unlike the somewhat absurd 51% tax rate imposed on mobile sports betting, online casinos would only be taxed at 25%.
Addabbo’s Senate Bill 8412 specifically seeks to “authorize interactive online gaming” and collect a one-time $150 million royalty. The proposed tax rate for online gambling in New York City is estimated to generate $475 million in additional revenue for the state each year.
Following the success of online sports betting in the state, many industry players (including ourselves) suspected that such a move would follow once the states (not just New York) tasted the benefits of the Additionally, New York has observed that states like Pennsylvania and their New Jersey neighbors add around $120 million per year in online casino betting taxes.
If online gambling in New York is allowed, it could easily become the most profitable state overnight…just like it has with mobile sports betting. Lawmakers are also keen to help post-pandemic economic recovery, which could help speed up that process.
This week’s specials: