AAPN CEO Assesses NY’s Prospects of Passing iPoker Legislation

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Monday, October 12th, 2015 | Written by Charles Washington

On September 9th, the New York Senate Standing Committee on Racing, Gaming and Wagering held a public hearing in Albany to discuss the future of online poker in New York, as the state carefully considers further moves to legalize online poker within its borders. The hearing was in regards to SB 5302, a bill that was introduced by NY Senator John Bocacic (R-District 42), and as he explained after the hearing:

“The reason we’ve been studying this and why I had a public hearing was to gather technical information to improve the bill. If you’re going to be in the gaming business, if you’re going to want revenue for the state.. you’re going to have to eventually get into the business.”

On hand to discuss the legislation was The Poker Players Alliance (PPA), and representatives of several casinos. Also taking a keen interest in the proceeding was CEO of the All American Poker Network (AAPN), David Licht (photo), who after the hearing spoke to Poker News about the prospects of legalizing online poker in New York. The interview revealed the following:

Assessment of AAPN CEO David Licht

1. Overall, Licht felt that the NY hearing was a step in the right direction. With so many people in New York and beyond using illegal overseas gambling websites, he believes lawmakers need to be made more aware of how popular online poker is, to what lengths people are willing to go to in order to play it and the potential revenue that the state is losing from not providing these players with a legal way to play.

2. Licht anticipates that legalizing online poker would bring the state of New York $100 million in revenue during the first year after legalization as operators will be required to pay a licensing fee of $10 million and to pay a large tax. Due to New York’s large population, he believes that online poker will generate plenty of revenue for operators and by extension, for the state in the form of tax revenue.

3. Licht postulates that legalizing online poker in Pennsylvania or Delaware could encourage New York lawmakers to act more quickly, particularly if online poker brings in a lot of revenue to the state or states in questions.

4. For now, Licht believes that New York will only succeed in legalizing online poker, if anything. He does not currently see the potential for full legalization of online casinos in New York like the ones operating in New Jersey.

5. Licht feels that online poker is not a threat to New York’s land-based casinos. He sees the target demographics for casinos and online poker as being completely different and does not believe that people who now visit New York casinos are likely to stop if online poker legislation succeeds.

6. When asked about what needs to happen next to help SB 5302 pass, Licht said that lawmakers will need more factual information and education regarding online poker and its benefits. In addition, he sees the need to get casinos and racinos involved by either partnering with prospective operators or by providing software.

7. Licht does not believe that there is a potential for the legalization of online poker at the federal level at this point in time. He foresees state lawmakers being the only ones interested in considering iGaming at present.

8. Overall, Licht believes that as more states legalize online poker, there will be an increase in contracts between states that will allow sites to combine players from one or more states at tables. This would increase liquidity for sites, allowing them to generate more revenue and pass on more tax dollars.

Assemblyman Pretlow May Improve Chances in 2016

In the meanwhile, the USA’s main online poker lobbyists, The Poker Players Alliance (PPA), have warned players against getting their hopes up too high for iPoker legislation in 2016, when the legislative bodies reconvene in January. According to PPA executive John Pappas, right now SB 5302 is mostly John Bocacic’s initial thoughts, and further progress on the issue would need the support of his upstate colleagues, such as Assemblyman Pretlow (D-District 89). Pretlow is currently the chairman of the New York State Assembly Racing and Wagering Committee, giving a collaborative campaign by both Bonacic and Pretlow a greater probability of success. As Pretlow wrote in an op-ed this summer:

“The proposal currently being considered in the House, the Restoration of America’s Wire Act, would prevent states from deciding for themselves how to regulate gaming and online lotteries, prevent us from capturing the potential for economic growth these systems offer and tie the hands of our law enforcement when it comes to protecting consumers online.”