New York Senator Renews Push for Online Casino Regulation

New York State Senator Joseph Addabbo has refiled his long-standing proposal to legalize online casinos, marking his third attempt to expand the state’s gambling framework to include iGaming and an online lottery. The bill, S2614, faces significant challenges, including strong opposition from unions representing casino workers and competing regulatory priorities. Addabbo’s persistence underscores the potential financial benefits of legal online casinos, but questions remain about whether the state is ready to embrace this change.

 

Developments

A key sticking point is opposition from unions, particularly the Hotel Trades Council (HTC), which represents hospitality and casino workers. These unions argue that legalizing online casino gaming could reduce revenue at physical casinos, ultimately leading to job losses. Addabbo has included a provision in S2614 to allocate up to $40 million in funding for affected workers, but the HTC remains unconvinced. In 2024, HTC Political Director Bhav Tibrewal called Addabbo’s efforts a “job killer,” emphasizing that no amount of state revenue could justify the loss of jobs in their view. This entrenched opposition could prove just as challenging in 2025 as it was last year.

Adding to the complexity is the ongoing expansion of brick-and-mortar casinos in New York. Regulators are currently working to select sites and licensees for up to three new casinos in the downstate region, with decisions expected by late 2025. These new casinos could potentially add to the HTC’s membership and amplify concerns about online gaming cannibalizing revenue. In the short term, the focus on approving and developing these new casino projects could overshadow efforts to push online casino legislation forward. On a longer timeline, the success of these projects could further solidify union resistance to iGaming.

Governor Kathy Hochul’s stance on online casino legislation also complicates the issue. Hochul’s 2024 budget proposal excluded revenue projections from iGaming, signaling a lack of prioritization for the initiative. If her 2025 proposal similarly omits online casino revenue, it would indicate that her administration remains indifferent or unconvinced of the measure's value. To overcome this challenge, Addabbo and his allies may need to make a stronger case that the state’s gaming regulators can simultaneously manage the rollout of new casinos and the implementation of online gaming.

Despite these obstacles, Addabbo’s determination to move the conversation forward is clear. He first attempted to include online casino legislation in the 2024 state budget and later pursued it as a standalone measure, demonstrating his commitment to advancing the issue. With S2614 now awaiting action in the Senate Racing, Gaming, and Wagering Committee, the stage is set for another contentious year of debate. Whether the legislation gains traction in 2025 will depend on Addabbo’s ability to build consensus among stakeholders and address lingering concerns about its impact on jobs and the broader gaming industry.

 

No matter how much state revenue iGaming creates, if it comes at the cost of hurting the prospects for jobs at casinos, in our mind it’s a no-brainer that it’s the wrong thing to do.

 

Conclusion

The push for online casino regulation in New York is emblematic of a larger national debate about the future of gambling in the digital age. While proponents point to the significant revenue potential and consumer demand for online gaming, critics warn of the potential consequences for traditional casinos and the workers they employ. For New York, the stakes are high, with billions in potential revenue and the livelihoods of thousands of casino employees hanging in the balance. The coming months will reveal whether Addabbo’s persistence can overcome the entrenched opposition and regulatory challenges that have stalled progress so far.