For Fourth Straight Year, Addabbo Bidding To Legalize iGaming In New York

State Sen. Joseph Addabbo has filed legislation for the fourth consecutive year looking to legalize real-money online casino gaming in New York.

The start of the calendar year also brings the start of state legislative sessions. Addabbo’s bill, S02614, is identical to the bill he filed last year and again referred to the Racing, Wagering, and Gaming Committee that he chairs. There is a companion bill in the Assembly, A06027, sponsored by Assemblyperson Carrie Woerner.

Last year’s bill did not get any traction in Albany since the New York State Gaming Commission spent much of 2025 working its way through the process of awarding three downstate casino licenses, which eventually went to Bally’s, Resorts World, and Hard Rock.

Each entity paid the $500 million license fee before the start of the new year, clearing the deck for Addabbo to make another run at legalizing iGaming in 2026. Long the point legislator in the state Senate for gaming, Addabbo was a central figure in bringing mobile sports betting to the Empire State.

Cannibalization concerns and other bill highlights

Cannibalization remains a point of concern for some brick-and-mortar casinos even as the two new downstate venues and expansion by Resorts World into a full-service casino project to create tens of thousands of jobs in total. Addabbo’s bill addresses that directly by making the NYSGC pay one-quarter of one-tenth of one percent (0.025%) of the tax revenue generated by iGaming “to a fund established for the purpose of employee training, responsible gaming training and education, health, and development.” That fund will receive at least $25 million each fiscal year.

Addabbo’s bill proposes a 30.5% tax on operator gross gaming revenue, with that revenue outside the aforementioned fund going toward education. That rate is on the higher end when compared to the eight states that have legalized iGaming, which includes Maine doing so last Thursday.

It is higher than neighboring New Jersey, which raised its rate to 19.75% at the start of the fiscal year last July. It is slightly higher than Pennsylvania, which has an effective levy of near 30% since it taxes slot revenue and table games revenue at differing rates. Michigan operators pay rates ranging from 20% to 28% based on adjusted gross revenue accumulated during the calendar year.

Addabbo’s proposed tax rate for iGaming is also notably lower than the 51% being paid by New York’s eight mobile sportsbooks. That has generated $996.8 million in receipts through the first nine months of the fiscal year in the Empire State and is tracking ahead of the $1.2 billion estimated in the enacted budget for 2026.

Will Hochul back legalization?

As the downstate casino process played out in recent years, New York Gov. Kathy Hochul could best be described as indifferent to legalizing iGaming. Addabbo had previously stumped for public support during legislative sessions prior to Hochul’s proposed budget being released, but each year that it failed to be included left legislation little chance of being passed.

Hochul will hold her “State of the State” address Tuesday, which will offer the first clues as to whether she is willing to consider iGaming as a potential revenue stream for the budget. There could be hesitancy since Hochul is running for re-election, and cannibalization concerns that could endanger jobs may make it a non-starter.

The state also has the $1.5 billion in downstate casino license fees in hand to apply to the upcoming budget. Still, even with those license fees to potentially plug some holes, New York is likely facing a multi-billion dollar budget deficit.

One place for optimism for iGaming proponents is that Hochul signed a bill sponsored by Addabbo banning online sweepstakes casinos in New York last month.

When Hochul signed the sweeps ban into law, the Social Gaming Leadership Alliance (SGLA) claimed operators contributed $230 million into the New York economy in 2024 and claimed a “modern regulatory framework” would have provided the state as much as $80 million in new annual tax revenue. That, however, would likely be a small percentage of what regulated iGaming could bring to New York coffers, given Pennsylvania generated $735.2 million in the first 11 months of 2025, and New Jersey reported an inflow of $455.2 million over the same period.