Gambling Laws of New York Legal State of Gambling

The Legal Gambling Status in New York

In New York, a variety of gambling forms are legal, catering to different preferences among its residents and visitors. Bingo games are permitted under charitable gaming laws, allowing nonprofits and charitable organizations to host these events. The state operates a robust lottery system encompassing various games like scratch-offs, draw games, and multi-state lotteries. Sports betting has been legalized, with both in-person and online options available. Since the launch of mobile sports betting in 2022, New Yorkers can access several licensed online sportsbooks. Daily Fantasy Sports (DFS) is also legal, following legislation that explicitly sanctioned DFS platforms, allowing enthusiasts to participate in these contests. Parimutuel betting, notably on horse racing, is legal and widely enjoyed at racetracks and off-track betting facilities across the state. While these forms of gambling are permitted and regulated, New York still prohibits online casino gambling, maintaining strict laws against this particular form of wagering.

Legal Gambling Forms in New York

In New York, several forms of gambling are legally permitted, offering diverse options for entertainment and participation. Residents and visitors can engage in legal gambling activities such as the state-operated lottery, which includes various games like scratch-offs, draw games, and multistate lotteries. Sports betting is also legalized, both in-person and online, allowing individuals to place bets on sporting events through licensed sportsbooks. Parimutuel betting, predominantly on horse racing, is a legal form of wagering at racetracks and off-track betting facilities across the state. Charitable gaming laws permit bingo events hosted by nonprofit organizations, providing another avenue for legal gambling in New York. However, it's important to note that despite these options, online casino gambling remains illegal in the state.

In New York, the legal gambling age for participating in most forms of gambling, including casinos, lottery, and sports betting, is 21 years old.

Legalization of Lotteries in New York

New York State's lottery system emerged following the endorsement of a 1966 referendum by a substantial 60 percent majority of voters. Established in response to this approval, the state's lottery laws allocate a significant portion of revenue towards designated areas. Specifically, between 40 and 60 percent of the generated lottery revenue is directed towards prize payouts, fostering incentives for participants. Simultaneously, a substantial portion, ranging between 25 and 45 percent, contributes to the state lottery fund. This allocation scheme serves various state-driven initiatives and public projects, utilizing lottery earnings to support diverse programs and endeavors within New York. The legislation not only structured the lottery system's operation but also delineated how its proceeds would be distributed for prize payouts and state-benefitting ventures, shaping the lottery's role in funding essential initiatives throughout the state.

Gambling in New York – Licensing, Tax and Fees

In New York, casinos face a substantial tax rate of 51% on their gross gaming revenues, marking one of the highest tax rates among states with legalized gambling. This significant tax imposition impacts the earnings generated by casinos within the state. With the proliferation of mobile sports wagering, there's been a noticeable decline in gross gaming revenue from in-person sports wagering at commercial casinos, registering a substantial 45% decrease in the last fiscal year. Prospective casino licensees in downstate New York are subject to substantial upfront fees, mandated to pay at least $500 million in licensing fees under the terms of a pending budget deal. Specific gaming activities like bingo have predefined regulations, requiring a license fee of $18.75 per occasion, limited to a maximum of 216 occasions annually. There are restrictions on conducting bingo games, allowing them on a maximum of 18 days within a given year. These licensing fees and taxation structures significantly impact the financial landscape for gambling establishments, shaping the economic factors affecting the gaming industry in New York.