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New York’s efforts to legalize online casinos have moved slowly, with little progress so far. The state is not alone: online casino gambling remains prohibited in 42 US states.
Legal real-money online casinos are currently available in seven states: New Jersey, Michigan, Delaware, Connecticut, Pennsylvania, Rhode Island and West Virginia. Maine has approved online casino gaming, but live operations have not yet launched.
Citing the industry’s economic potential, New York lawmakers have renewed efforts to legalize online casinos. The latest proposals revive long-running debates over regulation, revenue and consumer protection.
New York’s gambling framework: key milestones
New York’s modern gambling framework began with tribal gaming compacts following the passage of the federal Indian Gaming Regulatory Act in 1988. The industry expanded significantly in 2013 after voters approved commercial casinos, leading to the construction of four upstate casino resorts and continued development plans for downstate facilities.
The next major shift came with online sports betting, which was authorized in 2021 and launched in early 2022. Since then, online sports betting has become a major revenue source for the state.
Online casinos, however, have faced a slower path to legalization due to regulatory, political and market concerns. Momentum increased in 2022 when Sen. Joseph Addabbo Jr. introduced legislation to legalize online slots, poker and table games. At the time, Addabbo pointed to established markets such as New Jersey and Pennsylvania as models for regulation.
Proposals introduced in 2023 and 2024 were ultimately sidelined during budget negotiations after labor organizations raised concerns about consumer protections and potential impacts on existing casino jobs.
In 2025, Addabbo introduced Senate Bill 2614, arguing that regulation was needed to curb a growing black market for online casinos. The bill failed to advance, in part because downstate casino licensing issues remained unresolved.
In early 2026, the same bill resurfaced and is expected to receive more serious consideration. Whether it advances into law remains uncertain, though lawmakers may point to the strong performance of online sports betting as justification.
What’s inside New York’s latest online casino bill
The latest proposal would place online casinos under the oversight of the New York State Gaming Commission, establishing rules for licensing, taxation and operations.
Key elements include:
- Games covered: Online slots, table games and potentially online poker. Licenses would be available to entities already authorized to operate physical casinos or video lottery terminals.
- Tax structure: A proposed tax rate of about 30.5% of net gaming revenue, with proceeds directed to education and other state priorities.
- Licensing fees: Initial fees of approximately $2 million for operators and $10 million for independent platform providers, with licenses valid for up to 10 years.
- Operational requirements: Servers would be required to remain within licensed New York facilities, and each operator would be limited to one branded online platform, or “skin.”
- Responsible gaming measures: Mandatory age verification, deposit limits and funding for problem gambling education and treatment.
Supporters say the framework aims to balance economic benefits with consumer protection while allowing established operators to compete.
Why lawmakers are focused on online casino revenue
If legalized, analysts estimate online casinos could generate up to $1 billion annually in tax revenue for New York, approaching the roughly $1.04 billion collected each year from online sports betting.
Projections are driven by New York’s large population and strong demand for online gaming. Supporters also argue legalization would redirect billions of dollars currently spent on offshore, unregulated platforms back into the state.
The end of sweepstakes casinos — and what it means
In December 2025, New York enacted a ban on sweepstakes casinos, ending a form of unregulated gaming that had operated in a legal gray area. The law made it illegal for companies or service providers to operate or support sweepstakes platforms that mimic casino games using dual-currency systems.
The ban eliminated a significant source of unregulated online gaming activity in the state. Some industry observers warned of short-term economic losses, estimating more than $230 million annually in foregone licensing and transaction activity. Supporters countered that the measure cleared the way for a fully regulated online casino market and stronger consumer protections.
Consumer protections in proposed online casino laws
Responsible gaming requirements remain a central feature of the proposed legislation. Draft bills emphasize safeguards designed to limit harm and promote accountability from the outset.
Commonly proposed protections include:
- Age and identity verification
- Voluntary self-exclusion tools
- Deposit and spending limits
- Dedicated funding for problem gambling education, treatment and research
Advocates argue these measures are essential to establishing a regulated and safety-focused online casino market.
What could still block NY online casino legalization
Despite renewed momentum, significant obstacles remain. Previous efforts stalled after the governor excluded online casino revenue from budget proposals, signaling limited executive support.
Lawmakers must still reach consensus on tax rates, licensing costs and revenue allocation. Labor groups and land-based casino operators continue to raise concerns about competition and job impacts, issues that will likely shape final negotiations.
Timing is also a challenge. Major policy changes typically must advance early in the legislative session and move through committee hearings, amendments and floor votes before reaching the governor’s desk.
Until those debates conclude and a bill is signed into law, legalization remains uncertain. If Addabbo’s proposal stalls again, any launch of online casino gaming in New York could be delayed until 2027 or later.
