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Across New York, discussions about legalizing online gambling are gaining momentum. Although the bill has not yet been signed into law, policymakers are already weighing its potential economic impact.
Legal online gambling is expected to generate new revenue that could support public services. Currently, many New Yorkers use offshore platforms or gamble in neighboring states, meaning significant amounts of money leave the state. With legalization, that spending would shift to in-state platforms, allowing the government to collect taxes instead.
This guide examines the revenue New York could gain from legalization and how it may affect its counties. We begin by evaluating gambling revenue from neighboring US states.
Strong US online casino revenue from neighboring states
In September alone, US online casinos recorded more than $829 million in revenue. Michigan generated the most, with more than $255 million that month. New Jersey reported about $243 million, and Pennsylvania gained approximately $231 million. These states show the potential a developed online casino market can generate each month.
Smaller states are expanding as well. Connecticut earned more than $50 million in September and continues to grow. These figures suggest smaller markets can perform well when structured appropriately. This matters for the Hudson Valley because legalization, combined with New York’s far larger population, could help the state surpass several markets.
How the Hudson Valley could benefit from online gambling
Hudson Valley counties rely heavily on property and sales taxes as their primary revenue sources. These two categories account for most of their annual income, leaving little room to maneuver as budgets tighten. Online gambling taxes could help diversify revenue and reduce the burden on small businesses and homeowners.
Over time, this could generate tens of billions of dollars for the state. The funds could be redirected to local governments, with portions allocated to roads, broadband, public schools, and emergency services in counties such as Westchester, Dutchess, and Ulster. Tourist-heavy areas like Ulster and Sullivan could use the funds to support infrastructure and seasonal costs.
New York’s proposed online gambling tax structure
Lawmakers have proposed a tax rate of about 30%. Licensing fees would provide additional revenue. The structure is comparable to those in other leading states, and operators would be taxed on gross revenue. It would then be up to the state to determine how much money is distributed to counties.
By following models used elsewhere, local governments in New York could maintain a steady flow of monthly revenue. These funds would help cover rising school costs, transportation needs, and other long-term obligations.
What other states can teach NY about online gambling
Neighboring states offer clear examples of how online casino gambling can generate a reliable monthly income. New Jersey online casinos, Pennsylvania, and Michigan continue to bring in hundreds of millions of dollars. Their tax structures show how states can use this money for education, infrastructure, and other priorities.
There is already substantial gambling activity leaving New York. Many residents travel to New Jersey or use offshore sites. New York would retain that money through legal online casinos and sportsbooks and curb illegal online gambling by offering a regulated alternative.
Roadblocks to online gambling legalization in New York
However, barriers remain. Online gambling has not yet been legalized in New York, and lawmakers continue to debate the issue. Several bills, including Senate Bill S2614, have been introduced, but none have passed as of 2025. Even if a bill passes next year, implementation may take time. As a result, licensed platforms may not be available until 2026.
Local governments must also consider the social impact. Reports highlight concerns around addiction and consumer protection. Addressing these risks would require improved support systems, such as counseling services and public awareness programs. Another major factor is revenue distribution: counties may not benefit as expected if most tax revenue stays with the state.
How legal online casinos could transform Hudson Valley
Legalizing the online gaming industry could reshape local budgets in the Hudson Valley if managed effectively. The funds would help stabilize school taxes, pay for highway repairs, and support emergency services. They could also expand broadband access in rural areas and ease the tax burden on property owners, who already cover a large share of local revenue.
The region would also benefit economically. A legalized market would create new jobs in customer service, technology, compliance, and marketing. Local companies could partner with operators or see increased economic activity.
The outlook for online gambling and the Hudson Valley
The potential is significant. Neighboring states are already collecting hundreds of millions of dollars each month. New York may achieve similar or even stronger outcomes. With a reasonable tax system and fair distribution of revenue to local jurisdictions, Hudson Valley counties could benefit for years to come. Ultimately, the future depends on state lawmakers, regulations, and the successful creation of a well-managed, safe market.
