For the fourth consecutive legislative session, New York Senator Joe Addabbo is once again expressing confidence that the state will move forward with legalising online casino gambling this year.
Addabbo has refiled Senate Bill 2164, which proposes authorising iCasino gaming in New York. The Queens Democrat, who chairs the Senate Racing, Gaming and Wagering Committee, is leading the effort alongside a companion Assembly bill, A6027.
Addabbo said New York continues to miss out on roughly $1 billion annually as residents turn to neighbouring states such as New Jersey, Connecticut and Pennsylvania, as well as illegal operators. While he remains optimistic each year, he acknowledged that success ultimately depends on the state budget process and broader political support.
“I always begin the session hopeful,” Addabbo said. “But this is a budget issue. It can’t be driven by one person alone. In every state that has legal iCasino, it happened because the governor supported it or needed it. I think that’s where New York is heading.”
The senator is encouraged by the possibility that Governor Kathy Hochul will engage in discussions around iCasino, particularly as New York faces significant reductions in federal healthcare funding. Addabbo believes revenue from online casinos could help offset those losses.
He also pointed to Hochul’s efforts to strengthen protections for minors in sports betting. Addabbo noted that while underage users may bypass safeguards in regulated sports wagering, they are also likely accessing unregulated and illegal online casino platforms. Although New York attempted to address this through last year’s sweepstakes ban, he argued that a fully regulated iCasino market would provide stronger consumer protections.
“I support the governor’s work to safeguard minors in mobile sports betting,” Addabbo said. “Those protections exist because the industry is regulated.
“When I push for iGaming, it’s not just about creating sustainable revenue,” he added. “It’s also about protecting New Yorkers who are currently gambling in unsafe environments, including young people.”
New York iCasino proposal
Under SB2164, casinos, video lottery terminal facilities, online sports betting operators and tribal nations would all be permitted to launch iCasino platforms.
The proposal includes a 30.5% tax rate on online casino revenue, along with a $2 million licensing fee. For comparison, New York currently applies a much higher 51% tax on sports betting.
Addabbo acknowledged ongoing concerns that iCasino could draw customers away from physical casinos, an argument frequently raised by the National Association Against iGaming. However, David Rebuck, former director of the New Jersey Division of Gaming Enforcement, has publicly challenged that position.
Pointing to examples in Pennsylvania and New Jersey, Addabbo emphasized that brick-and-mortar casinos in those states continue to operate successfully. He added that tying online licences to existing casinos encourages cross-promotion, ultimately benefiting operators rather than harming them.
“I truly believe it’s inevitable — it’s not a matter of if, but when,” Addabbo said. “Right now, New Yorkers aren’t being helped, and the state is losing revenue. It’s difficult work, but I’m committed to doing what it takes.”
Brandt Iden, vice president of government affairs at Fanatics Betting & Gaming, shared Addabbo’s view heading into the new session. Iden, who previously helped lead Michigan’s iCasino legalization as a state lawmaker, noted that educating legislators is a gradual process.
“In Michigan, it took five years to get the bill passed, and in many other states it’s only been two or three years so far,” Iden said. “People often underestimate how long this takes. I’m optimistic — progress comes with time, and eventually we’ll reach that point.”
New York iCasino hurdle out of the way?
In recent legislative sessions, New York’s gambling agenda centered on awarding downstate casino licences.
With those licences finalized last year, Addabbo said attention can now shift toward expanding iCasino gaming. He noted that international operators are closely watching New York and see strong growth potential in the state.
“Now that the licensing process is behind us, we have a chance to take a broader look at gaming,” Addabbo said. “New York is viewed globally as a major growth market. It’s a big step, but it’s time to roll up our sleeves and move forward.”
Beyond iCasino legalization, Addabbo also hopes to advance iLottery offerings. He pointed out that technological progress and the presence of online casinos in three neighboring states are putting New York at a disadvantage.
“I always consider both revenue opportunities and consumer protection,” Addabbo said. “Technology keeps moving ahead, and we can’t hold it back. Since it’s here to stay, we should work alongside it.”
Regulating prediction markets
Last year, New York lawmakers moved to ban online sweepstakes casinos. This year, Addabbo pointed to prediction markets—particularly Kalshi—as a new challenge for the regulated gambling industry.
Instead of pursuing outright bans, he suggested that regulation could be a more effective approach. In 2025, the New York State Gaming Commission issued a cease-and-desist order to Kalshi for allegedly offering unlicensed sports betting. Kalshi responded by filing a lawsuit against the state, one of several legal battles the platform is currently facing nationwide.
“I’d prefer New York work with Kalshi and similar platforms under a regulated framework,” Addabbo said.
He warned that these platforms, which offer products similar to sports betting, are beginning to cut into sportsbook revenue.
“Our licensed operators pay a 51% tax rate,” he said. “If a company like Kalshi isn’t contributing anything and starts taking market share, that’s a real concern. The solution is regulation.”
