New York Online Casino Legislation Faces Stalemate

Albany, NY — Efforts to advance online casino legislation in New York have encountered a significant roadblock, primarily due to strong opposition from the New York Hotel and Gaming Trades Council (HTC). This opposition has been a recurring issue, with the HTC standing firm against the expansion of iGaming in the state.

Last year, New York’s attempt to introduce online casino legislation failed largely due to resistance from the HTC, which argued that online gaming could harm employment in the state’s casino industry. In response, Senator Joe Addabbo, a primary sponsor of the bill, introduced a $25 million fund this year aimed at addressing concerns about job losses. Despite this measure, the fund has not been sufficient to sway the AFL-CIO, of which HTC is a part.

Bhav Tibrewal, the political director for HTC, criticized the proposed fund, describing it as inadequate and claiming it would not mitigate the negative impacts of online casinos on employment. “The fund is putting bells and whistles on a job killer,” Tibrewal stated. “We firmly believe that iGaming harms the best part about casino gaming in New York State, which is jobs.”

Tibrewal and HTC maintain that the focus should be on the creation of high-quality jobs through new downstate casinos rather than pursuing iGaming. They argue that physical casinos contribute significantly to local economies by creating a wide range of jobs beyond just gaming dealers, including positions in food and beverage services, hospitality, and other resort-related sectors.

The licensing process for the proposed downstate casinos, which is currently underway, has been progressing slowly. The New York State Gaming Commission is expected to issue further rounds of questions before proposals are finalized. Community Advisory Committees and the Gaming Facility Location Board will also play crucial roles in the process. Governor Kathy Hochul has echoed the HTC's concerns, omitting online casino legislation from her executive budget to prioritize the development of downstate casinos.

 

“The fund is putting bells and whistles on a job killer. We firmly believe that iGaming harms the best part about casino gaming in New York State, which is jobs.”

 

The Future

A recent study by The Innovation Group, presented to the Maryland House committee, has added weight to the HTC’s position by projecting a potential 4-8% reduction in casino jobs if iGaming were legalized. Tibrewal highlighted this report as a significant factor in their opposition, despite some reports from neighboring states like New Jersey suggesting that online gaming could coexist with brick-and-mortar casinos.

HTC remains adamant that without substantial evidence demonstrating that online casinos will not negatively affect existing jobs or future job creation, they will continue to oppose iGaming legislation. Tibrewal emphasized the union’s commitment to ensuring that any potential expansion of gaming in New York prioritizes the preservation and enhancement of local employment opportunities.

As discussions continue and New York seeks to address budgetary needs potentially filled by online gaming revenue, the HTC’s stance will likely be a major consideration in any future legislative efforts regarding iGaming.