New York iPoker Legislation In Place For 2017

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Friday, July 15th, 2016 | Written by Lucy Brown

New York-based poker enthusiasts were hoping that 2016 would finally herald the legalization and regulation of online poker in the state, but with this year’s legislative session fast coming to a close, it is now clear that the dream of an iPoker bill passing in Albany may have to wait for at least another year. While there had initially been interest in legalizing online poker, the focus of New York legislators subsequently shifted to what seemed to be the more pressing matter of daily fantasy sports betting.

In late June, New York then managed to pass a law legalizing daily fantasy sports, and outlining regulations for what Albany has defined as “a game of skill.” With the regulation of DFS now on the cards, hopes are once again high that online poker legislation may also have a chance of succeeding–it just won’t be until 2017.

The State of Online Poker in New York

Over the last few years, a number of online poker legalization bills have been introduced in Albany, but were never able to gain traction. 2016 did prove to be different than previous legislative years, though, and in February the New York Senate Committee on Racing, Gaming and Wagering passed an online poker bill through to the Senate’s Finance Committee. That committee in turn passed the bill in June 2016, but unfortunately the bill did not manage to progress to a formal vote in the Senate this year. Still, the fact that this new piece of legislation was able to make it further through the legislative process than any bill before is in itself promising.

The Impact of DFS Betting

While many have pointed to the shift of attention to DFS betting as causing the sudden halt in online poker discussions, the legalization of the game may end up being beneficial for iGaming in the long run. Once Governor Andrew Cuomo signs the bill, daily fantasy sports betting sites will be legal in the state, and because poker is also classified as a game of skill like daily fantasy sports betting, it’s easy to see how one can argue that legalizing the game online should naturally follow.

Furthermore, online poker has the potential to generate millions of dollars in tax and licensing revenues for the state, whereas DFS revenues would represent a mere drop in the ocean in comparison. According to the New York DFS bill, a license fee would cost just $150k, or 1.5% of the previous year’s revenue, while smaller operators may get away with paying as little as $1k depending on their level of business. All operators would also be required to pay 15% tax on their revenues, and as Jeffrey Gural, chairman of American Racing, explains:

“I think online poker is a good idea. The daily fantasy sports doesn’t generate money for the state. But the poker would generate real money.. [while many New Yorkers continue to play on offshore sites].. you might as well make it legal.”

Consumer Protection

The DFS industry continues to campaign for legislation on a platform that promotes the need for enhanced “consumer protection”. In the meantime, its success has been picked up by the Poker Players Alliance (PPA), which has now started to highlight similar concerns, whilst piggybacking on the DFS industry’s efforts in other US states. Commenting on the journey ahead, PPA Executive Director John Pappas said:

“Clearly, we could not convince everyone that regulation needs to happen now. So we are going to redouble our education efforts over the summer and into next year. We want to make sure that internet poker is first in line when the new legislative session begins.”

The Road Ahead

Part of what helped drive the online poker bill as far as it went in 2016 was the support of the brick and mortar casino industry in New York. With the voices of casinos united with that of lawmakers like Senator John Bonacic, the case for legalizing and regulating online poker becomes more compelling. For the 2017 legislative year, Bonacic will likely continue to lead the charge, as he has been the legislator most interested in legalizing online poker in New York over the last few years, and is sure to resume his efforts to get a bill passed.

Online poker doesn’t just have a powerful voice in the New York Senate. In the Assembly, Gary Pretlow has also been trying to legalize online poker. While he has not been able to make the progress that Bonacic has had with getting his own bill pushed through, he’s likely to lend his support to Bonacic’s legislation if it ever comes to a vote in the Assembly.