Joseph P. Addabbo, the State Senator, has expressed his commitment to continue advocating for iGaming. This entails all the elements of online casinos, iLottery, and poker, saying that his efforts will continue in 2024 no matter how much opposition his bill faces. The opposition is primarily from the association of retail casinos, with Hotel and Gaming Trades Council (HTC) believing that having iGaming in New York will effectively take away a large piece of market share from them. As a result, many of their employees will lose their jobs.
Joseph’s argument is founded on financial considerations. He claims that failing to legalize the section costs the state billions of dollars every year. This is potentially true for several residents of New York who either travel outside the state to engage in the activity or stay within the boundaries but look up to illegal offshore operators. Therefore, a significant amount of tax revenue that the state could have recovered is lost.
Furthermore, Addabbo’s argument is predicated on the notion that authorizing iGaming in New York would enable law enforcement to identify residents grappling with problem wagering and assist them in reintegrating into society in a constructive fashion. He has summarized his argument by saying that one cannot simply stop technology.
Analysts have backed his argument on financials: assuming the tax levied is 30.5%, it will bring tax revenue of almost $4 billion in a year. The assumed tax rate is lower than the one that often prevails, 51%. Sportsbooks currently generate only around $2 billion in tax revenue for New York. If passed, the segment will contribute 70% of the total tax revenue.
Hotel & Gaming Trades Council, also referred to as HTC, has said that iGaming will not just pull away market share and cause job losses, but it will also take away a major portion of its revenue. Bhav Tibrewal, the Political Director at HTC, has said that their answer is a simple no.
Addabbo has sought to be more productive with the argument, adding that there is a provision of state funds worth $25 million. Retail casinos can utilize this to compensate for unfavorable circumstances and avert job losses. Joseph has also highlighted that their argument can alternatively revolve around increasing the budget of state funds. Some of the best online casinos in the USA have their sights set on where the market is headed in the years to come. Their entry will then be decided to shape the entertainment market in New York.
Addabbo has concluded his side of the argument that the union is very likely to gain almost a thousand more workers from the new jobs that iGaming will create.
It is now unclear how further discussions proceed and whether iGaming will ever enter New York.
