New York iGaming Progress Stalled in Midwest Legislations; Addabbo Remains Optimistic
The upcoming days could decide the fate of iGaming in the New York Legislature this year, as per Sen. Joseph Addabbo's comments last week. This week, the legislative chambers are expected to produce their versions of the 2023-24 budget. If neither the Assembly nor the Senate includes the plan to legalize online casino gaming, it essentially spells the end of the line for this year, according to Addabbo, who heads the Senate Racing, Gaming, and Wagering Committee.
Gov. Kathy Hochul (D) unveiled her $227 billion budget proposal last month, and surprisingly, it did not include the legalization of iGaming.
If iGaming is left out of the lawmakers' budget proposals, as is widely anticipated by the gaming industry, it would be another blow to the growth of iGaming in the US. The sector, though more profitable than sports betting, has not expanded at the same rate as its online counterpart.
Addabbo, however, remains optimistic and sees a chance for iGaming this year due to the New York Metropolitan Transportation Authority (MTA). The MTA, which manages public transportation for New York City, Long Island, and other parts of downstate New York, is expected to face substantial budget deficits. To avoid significant service cuts, MTA leaders and state officials are looking for a new revenue source.
Hochul's budget proposes that the MTA receives a portion of the revenue generated by the three new casinos that are likely to be licensed, possibly as early as the end of this year.
"We in the Assembly and the Senate will reject that, but I have an alternative," Addabbo told. "I'm not going to just say no to the governor. I'm going to give her a better alternative. With iGaming, we could do it faster."
iGaming Bills Conflicting in Midwest States
The last state to approve iGaming was Connecticut, and that was 18 months ago. Besides Connecticut, other states that allow online casino gaming are Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
New York isn't the only state where iGaming legislation has been proposed this year. Lawmakers in Indiana and Illinois have also submitted bills, but Indiana's iGaming measures are already considered dead after missing their deadline to be heard in either the state House or Senate. Meanwhile, none of the three iGaming bills presented by Illinois legislators has made much progress.
Howard Glaser, Light & Wonder's global head of government affairs, explained that the issue that has hindered iGaming's acceptance in Illinois, Indiana, and even Iowa, is internal disputes within the gaming industry in those states.
There's no legislative opposition in any of those states," Glaser stated. "The opposition is all driven in the statehouses by lawmakers telling the industry, 'Until you guys agree on what this looks like, we're not going to pass anything. Otherwise, we're going to be making someone very unhappy in our state.'
What's impacting passage in most states, Glaser added, is that those states don't currently have a pressing need for additional revenue, a factor that usually drives gaming expansion. So this is more a time to educate lawmakers in potential iGaming states so that when the need for more revenue arises, those legislators will be ready to support legalization.
New York: Exhaustion or Progression?
Glaser stated that the opposition in New York differs from the Midwest states where iGaming has been considered. Here, the response is "it's too much, too fast," especially after the state approved online sports betting two years ago and expedited the casino process by a year. All three new casinos are expected to be awarded to downstate locations.
"You cannot underestimate how much attention the expansion of casinos in New York City takes up in the political process," he added. "Even though the legislature is now not directly involved, it still is a very political process. So, you have a lot of attention being drawn to that, and I think, a little bit of concern that lawmakers don't want to overwhelm the public with another gaming discussion."
There are also some concerns being raised by unions, who are worried about iGaming apps potentially stealing business from the new casinos, which will be built with union labor and staffed by union workers.
Despite some resistance, Glaser believes New York will eventually approve iGaming, possibly even next year.
While Glaser admits to some gaming exhaustion in New York this year, Addabbo uses another term to describe the situation. Progression.
"If mobile sports betting wasn't doing well, I would say there's no appetite for (iGaming) in New York," the senator said. "But, when you have the number one product in the country in mobile sports betting, and globally now, New York is perceived as a gaming expansion state. You use that momentum, in my opinion, you use that momentum, and you build on it."
