New York: Governor Hochul excludes online casino from 2025 budget, dealing major blow to legalization prospects
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New York Governor Kathy Hochul's executive budget for 2025 has dealt a substantial blow to the prospects of legalizing online casino sites in the state,especially for Senator Joseph Addabbo's Senate Bill S8185.
Similar to last year, Hochul did not include potential tax revenue from online casino expansion in her budget, significantly impacting the bill's chances of success.
Addabbo, who has consistently emphasized the importance of Hochul's support for the bill, faces an uphill battle as the budget clearly indicates a lack of endorsement from the governor. The absence of online casino revenue in the budget signals challenges for S8185's progressionthrough the legislative process.
Hochul's budget primarily focuses on gaming elements related to horse racing, intending to extend existing parimutuel tax rates and simulcast revisions into Fiscal Year 2025.
it allows some off-track betting facilities flexibility in spending their capital funds. However, missing from the budget is another bill by Addabbo, proposing fixed-odds racing at tracks alongside parimutuel betting.
The governor is currently engaged in other gaming matters, such as the vetting of potential licensees for the three downstate casino licenses. Additionally, negotiations for a long-term renewed agreement between the state and the Seneca Nation are ongoing, with a temporary extension of the existing compact until March 31.
March 31 also marks the deadline for the final budget agreement between the legislature and Hochul to be passed. The exclusion of online casino provisions raises uncertainties about the future of iGaming in New York.
For gambling experts,the exclusion of online gaming from the budget signifies a challenging road ahead. Backers have emphasized the potential revenue benefits of online gaming, especially after the success of the state's sports betting program.
While sports betting generates substantial revenue with a 51% tax rate, Addabbo's bill proposes a 31.5% tax on gross gaming revenue from online gaming. While lower, this tax rate could still pave the way for a lucrative online casino market, considering New York's status as one of the most populous states.
