Sen. Joe Addabbo has been pushing hard for online casino legalization in New York, and for good reason. The amount of tax revenue that could be generated every second of every day would produce a bull market of positive growth for state coffers.
The concept has worked in neighboring states such as New Jersey and Pennsylvania. Those two markets have shown that iGaming is much more lucrative than sports betting, in just about every facet.
That would be the case in the Empire State, should online casinos in New York ever be legalized.
New York is missing out on hundreds of millions of dollars
That state of New York failing to pass an iGaming bill means it is forgoing what could be billions of dollars in additional tax revenue. Sen. Addabbo has been the most aggressive, and vocal, politician in attempting to legalize the vertical. He introduced a bill in January that ultimately did not get passed.
The top three online casino markets in the US are, by far, Pennsylvania, New Jersey and Michigan. Pennsylvania is the clear market leader, as the Keystone State has already produced $1.48 billion in YTD revenue through July, generating $520.1 million in taxes.
Michigan is not far behind, generating $1.35 billion in revenue and $338.9 million in taxes. New Jersey is third, coming in at $1.33 billion and $232 million, respectively.
These three states are experiencing exponential growth in iGaming. What operators are on pace for in 2024 far exceeds 2023 figures. Here is what each state generated in revenue and taxes for in 2023:
| State | 2023 Revenue | 2023 Taxes | 2024 Revenue Pace | 2024 Taxes Pace |
|---|---|---|---|---|
| Pennsylvania | $2.11 billion | $744.1 million | $2.53 billion | $891.6 million |
| Michigan | $1.92 billion | $488.1 million | $2.31 billion | $581 million |
| New Jersey | $1.92 billion | $285.6 million | $2.28 billion | $397.7 million |
Obviously, it would depend on the structure in place, but a similar one to the aforementioned states, New York would likely become the market leader in an instant.
According to the US Census Bureau, New York is the most populated state out of the “Big 3” markets:
- New York: 20.2 million
- Pennsylvania: 13 million
- Michigan: 10.1 million
- New Jersey: 9.3 million
Give New York online casinos and tax revenue will be pouring into the state.
Addabbo ‘jealous’ of neighboring states
Sen. Addabbo seems to understand the impact of what online casinos can bring to the state of New York. He doesn’t have to look that far to see how it’s working in neighboring state New Jersey, and Pennsylvania further south.
The Garden State was the first to legalize online casinos, doing so in February 2013. Addabbo told PlayNY last November:
“I was concerned, as we always are, when neighboring states do something that we don’t do. It usually means a loss of money or a loss of jobs or a missed opportunity. And I hate missing a golden opportunity. I was certainly jealous of the fact that they were doing stuff that we should have done in New York.”
The fact that online casinos are legal in New Jersey means that some New Yorkers are crossing state lines to play. Addabbo is well aware of that.
“It’s frustrating, watching other states be so successful at it and you know a part of that, a good segment of that, is New Yorkers doing it in that state,” he said.
Addabbo hasn’t been shy in criticizing former Gov. Andrew Cuomo for his lack of enthusiasm for gambling.
But, Gov. Kathy Hochul is in favor of gaming in some regard, as she legalized NY online sports betting in 2022. It has turned into a billion-dollar industry.
What’s next for the online casino industry in New York?
Due to both Addabbo’s relentlessness, and Hochul openness to gambling, it feels like iGaming coming to New York is a matter of when, not if.
The book on New York online casinos in 2025 is closed. A new session, which may considering adopting iGaming for 2026 opens in January of 2025. With all of the work Addabbo has put into iGaming, he’s certainly hoping for legalization as soon as possible.
Should iGaming operators come to the Empire State, the money would not certainly go to waste.
“You’re looking at a need, a necessity,” Addabbo told PlayNY in January, “not only to create jobs but to address mental health and addiction and, again, a sustainable plan to address the fiscal situation this year and next year.”
New York would be able to address a lot of needs with the legalization online casinos.
