Operators looking to add online casino to their existing NY sports betting products are ahead in an Empire State poll, although many voters remain undecided.
About 44% of 532 constituents in New York State Sen. Joe Addabbo’s district said they supported online casino gaming in an online poll conducted in May. The poll results, which were released this week, also showed that 33% opposed online casino gaming, with 23% unsure.
Separately, legalized prostitution received 56% voter support in Addabbo’s district, with 28% opposed and 16% unsure.
NY sports betting tax rate draws ire
Sportsbook officials recently reiterated the frustration of NY sports betting operators over the 51% tax rate for their online product, even though they negotiated and agreed to it.
However, Troy Mackey, the coordinator of the New York Assembly’s Racing & Wagering Committee, told the National Council of Legislators from Gaming States summer meeting that the tax rate will not be lowered. In the latest bill that did not pass this year, NY online casino operators would be taxed at 30.5%.
“At least, in my opinion, I think there was less of a conversation about changing the 51% (sports betting) tax rate when the operators thought that iGaming might be a possibility,” Addabbo told LSR.
What Addabbo’s staff asked voters
The question Addabbo and his staff asked for the poll was:
“With many New York residents participating in illegal, unregulated, and unsafe gaming operations over the Internet, I introduced legislation allowing licensed interactive gaming operators to offer online casino games to the public. Steps to protect consumers, combat compulsive gaming, and prevent minors from accessing online gaming sites are included. iGaming would create an estimated $1 billion in additional revenue annually and create jobs.
“Do you support or oppose iGaming?”
Biggest takeaways from poll data
Addabbo provided his main takeaway from the data to LSR:
“What this leads me to believe is that people are, I guess, hesitant about expanding gaming. But there was another poll put out during session, when we were thinking about revenue: Do you want to raise taxes or do you want iGaming? And, of course, you give people that choice and they go boom, iGaming. So it’s all relative,” Addabbo said.
“So that means I’ve got a job to do. When I go to the community meetings in my district, to explain what iGaming is; how we’re addressing problem gaming; that other states do it, and we sort of lose that money. So it just tells me that my team and I, we have some educating to do for others.”
Obstacles for NY online casino
Addabbo said he did not envision much happening on the online casino front before the end of the year.
Significant obstacles remain, including the slow and arduous process of awarding downstate casino licenses. Addabbo was hoping to expedite the process.
“I’m very frustrated and disappointed about the Governor’s handling of the downstate licenses. We showed her a path with legislation that we expedite the process, and she wouldn’t sign the bill,” Addabbo said. “When we pulled the plug on congestion prices, at least temporarily, I was offering more than $3 billion to the MTA if we just expedited the process.
“But there are those who say we can’t talk about iGaming until we do the downstate licenses, and I think that’s foolish. We can do both. Then you’ve got the cannibalization issue. I don’t believe it does (as industry studies have suggested). But as long as there are people out there that do believe that, these are obstacles.”
Union continues to stand in the way
The powerful Hotel and Gaming Trades Council has repeatedly opposed an expansion of online casino gaming.
“Let’s be the model. And be creative with the iGaming language. Let’s protect the brick and mortar jobs,” Addabbo said. “Let’s be so creative and innovative that other states go wow, look at New York, they got it right. I know iGaming is a national concern for the Hotel Trades Council. They feel it jeopardizes every brick and mortar job in the country. Well, let New York lead the way as usual. Let’s write ironclad legislation that protects the brick and mortar (jobs) and let others use or language.
“We have that opportunity. But we have no opportunity at all if we don’t talk. So let’s be creative.”
Casino could follow NY sports betting
For now, it is back to the drawing board heading into the 2025 legislative season.
“Every state that has iGaming and sports betting or expansion in gaming, it’s either Governor-driven or economic-driven,” Addabbo said. “And I’ve always said, maybe the Governor doesn’t want to do iGaming but she may need to do iGaming. If we go into next session and there’s a $4 billion to $6 billion deficit in our budget, or she needs more money for the MTA, then maybe she says let’s do it.
“We only got mobile sports betting after we’d been advocating for years because of the Covid pandemic budget hole. Sometimes it takes an economic need, not a want but a need. So we’ll see.”