New York's Proposed Bill Classifies Online Poker as a Game of Skill
New York State Senator Joseph Addabbo Jr. (D-15th) has submitted a bill to make online poker legal in New York by categorizing it as a game of skill. This proposal comes after a previous bill sponsored by him, which aimed to legalize online casino gaming and online poker, did not gather enough support and was left out of Governor Kathy Hochul's (D) budget in January.
Addabbo, who is the head of the Senate Committee on Racing, Gaming, and Wagering, believes that this revised bill, without the problematic casino aspect, will be more acceptable to the legislature and the governor. However, previous standalone online poker bills have not had a fruitful history either. Addabbo or his predecesor, former retired State Senator John Bonacic, have been attempting to legalize online poker since 2014 without success.
Historically, these bills have received support in the Senate but have not made much progress in the Assembly, where they have been promoted every year by Assemblyman Gary Pretlow (D-89th).
Lower Tax
Addabbo's bill proposes approximately 10 online poker licenses, with each operator needing to pay $10 million. The revenues would be taxed at 15%, which is lower than the proposed figure for his earlier bill on online casino gaming and poker.
The legislation would leave it to the New York Gaming Commission to work out the specifics and create a regulatory framework for the potential future market.
The bill mainly focuses on the reasoning behind declaring online poker a skill game. Addabbo points out that a federal court in New York has determined that poker is primarily a skill-based game. In contrast, state courts have applied a more stringent "test of chance" to determine if a contest is one of chance, similar to what most states use.
Protecting Players
He states that "as the internet has become an essential part of our society, and internet poker a major source of entertainment for many people ... regulatory oversight [is necessary] to protect the honesty of the games and participants and maintain public trust."
The advantage of the legislature classifying online poker as a "non-gambling" skill game is that the bill would not require approval through a public referendum, as gambling expansion demands a constitutional amendment. This is how the legislature managed to legalize and regulate daily fantasy sports in 2016 -- a move that was later challenged in court by anti-gambling groups. Daily fantasy sports remain unregulated in New York.
Addabbo's bill is a late entry in the New York State legislative session, which is set to end on June 6th, but, as a influential legislator, he could call a special session if needed.
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Source: www.casino.org