New York Senator Joe Addabbo has renewed his push to legalise online casino gambling, arguing that regulation is increasingly necessary to protect consumers and prevent further losses of tax revenue to neighbouring states and illegal operators.

For the fourth consecutive legislative session, Addabbo has reintroduced legislation to legalise iCasino gambling in New York. Senate Bill S2164, alongside Assembly companion bill A6027, would permit regulated online casino platforms in the state. Addabbo, a Democrat from Queens, chairs the Senate Racing, Gaming and Wagering Committee and has been the leading advocate for iGaming expansion in Albany.

“For every year we don’t do it, we lose about a billion dollars to New Jersey, Connecticut, Pennsylvania and the illegal market,” Addabbo said. “I start every session optimistic. But it’s a budget process. It can’t just be me.”

Budget pressure and executive support

Addabbo said the success of the proposal depends largely on the state’s budget negotiations and the involvement of Governor Kathy Hochul. He argued that the timing may now be more favourable, as New York is expected to lose billions of dollars in federal health care funding this year. According to Addabbo, regulated iCasino revenue could help offset those losses, mirroring how other states have adopted online casinos as a fiscal tool. “Every state that has it is because the governor wanted to do it or needed to do it,” he said. “And I think that’s where we’re at.”

Hochul has previously prioritised consumer protection in gambling, particularly around underage participation in sports betting. Addabbo said that focus strengthens the case for iCasino regulation rather than weakens it. “I support the governor to help protect minors from mobile sports betting,” he said. “But why we’re able to protect them is because it’s a regulated environment.” He added that minors who circumvent safeguards on sports betting platforms are also likely accessing unregulated online casino games, which operate without age verification or consumer protections.

“When I advocate for iGaming, yes, it’s sustainable revenue,” Addabbo said. “But it’s about protecting the New Yorker doing it in an unsafe manner, including minors.”

Details of the iCasino proposal

Under S2164, existing casinos, video lottery terminal facilities, online sports betting operators and tribal entities would be eligible to offer iCasino platforms. The bill proposes a 30.5% tax rate on iCasino revenue and a $2 million licence fee. By comparison, New York taxes online sports betting revenue at 51%.

Opposition to iCasino expansion has historically centred on concerns that online gambling would cannibalise land-based casino revenue. The National Association Against iGaming has been a leading voice in that argument. Addabbo rejected those claims, pointing to neighbouring states such as New Jersey and Pennsylvania, where both land-based and online casinos continue to operate.

“The casinos are still open,” he said. “The cross-promotion provides revenue for the operators, if the licences are tied to the existing land-based casinos.” He described iCasino legalisation as inevitable. “I know it’s inevitable, not a question of if, but when,” Addabbo said. “You’re not helping New Yorkers. You’re losing money.” Brandt Iden, vice-president of government affairs at Fanatics Betting & Gaming, echoed Addabbo’s view that legalisation is a matter of timing rather than feasibility. Iden previously led Michigan’s successful iCasino push as a state legislator.

“It took five years to pass legislation in Michigan,” Iden said. “Many of these states, it’s only been two, three years. It takes a long time and that gets overlooked.” Iden said education of lawmakers remains a key hurdle but expressed confidence that New York will eventually follow other large states into regulated online casino gaming. In prior sessions, New York’s gambling debate was dominated by the awarding of downstate casino licences. Addabbo said that process is now complete, allowing lawmakers to focus on broader gaming expansion.

“Now that’s complete, there is an opportunity to look at gaming on a large scale,” he said. “Globally, New York is looked at as a growth market.” Alongside iCasino, Addabbo said he hopes to revive discussions around iLottery products, arguing that advances in technology and competition from neighbouring states are leaving New York behind. “Technology today is advancing and you can’t stop it,” he said. “It’s going forward, so let’s work with it.”

What if someone like Kalshi is not paying anything and it’s creeping into that? How do you address it? Regulate it.

Prediction markets emerge as new concern

Addabbo also flagged prediction markets as a growing regulatory challenge. Last year, New York banned online sweepstakes casinos. This year, he said platforms such as Kalshi pose similar risks by offering products that resemble sports betting without being subject to the same tax and licensing requirements.

The New York State Gaming Commission previously issued a cease-and-desist order to Kalshi, prompting legal action from the company. Rather than pursuing outright bans, Addabbo said regulation may offer a more durable solution. “We have operators paying 51%,” he said. “What if someone like Kalshi is not paying anything and it’s creeping into that? How do you address it? Regulate it.”

As New York enters another budget cycle, Addabbo’s proposal once again places iCasino legalisation at the intersection of fiscal policy, consumer protection and regulatory consistency. Whether that argument gains traction this year may depend on how urgently state leaders view the growing competition from both neighbouring jurisdictions and unregulated gambling markets.