New York Online Poker Hearing Scheduled For September 9th

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Tuesday, September 8th, 2015 | Written by Shane Larson

New York The Next Regulated iGaming State?

It’s a question that continues to arise as legislation reaches the floor of the legislature in Albany only to be rejected, but it appears that New York many be inching closer towards legalizing online gambling. Over the past few years, New York has grown concerned that its own casino gambling industry might suffer a dramatic decline, much like that of Atlantic City, with valuable revenues subsequently siphoned off to customers who would usually have visited New York to gamble. As a result, the state is increasingly seeing online gambling as a way of safeguarding the industry’s future viability, and ensuring that gambling tax revenue continues to fill state coffers. However, what type of gambling will be permitted, and when a law might pass remains a mystery.

September 9th Hearing

New York State Senator John Bonacic (photo) has announced that the New York Senate Racing, Gaming, and Wagering Committee will have an online poker hearing on September 9th. Bonacic has long been a supporter of online poker, and as Chairman of the committee he helped introduced bills to legalize the practice in 2014, and earlier in 2015. While the laws he drafted did not pass, they indicate his dedication to the cause.

The hearing that will take place this month seems to be an exploratory one that will discuss the merits of online poker and iGaming, as well as the potential downsides to legalization. Bonacic has indicated that representatives from Caesars and MGM and all of the off track betting, racinos and casinos in the state will be invited to attend the hearing. Based on his comments, it seems that this hearing will be an introduction to a deeper exploration and discussion of iGaming that will begin in 2016.

NY Currently Bans Unlicensed Games Of Chance

New York currently prohibits unlicensed games that “depends in a material degree upon an element of chance”. Senator John Bonacic subsequently tried to overcome this hurdle by placing a clause in his online poker-only bill that states:

“Contest of chance” means any contest, game, gaming scheme or gaming device in which the outcome depends [in a material degree] PREDOMINANTLY upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein.”

Nevertheless, Bonacic may have to revise his definition if he wants to advance online gambling legislation in New York, as online poker is no longer the cash cow it once was, while casino games in general are the main products driving the industry forward.

Poker-Only Bill Unattractive

While it’s encouraging to see Bonacic trying to move forward with online poker in New York, the fact that he has so far only tried to legalize this one aspect of iGaming could prove problematic, as online gambling companies rely heavily on casino games to bolster profits. In New Jersey, 80 percent of revenues come from casino games, not from online poker, and it therefore may prove difficult to entice companies to expand into New York, even if the law does pass. It’s possible that Bonacic could be swayed to expand his bills, but getting fully legalized iGaming in New York will likely be an uphill battle. Other states that have attempted to legalize internet gambling have been discouraged by lobbyists and casinos that fear the effect full legalization could have on their bottom line.

To get any iGaming bill to pass, Bonacic will also likely have to sweeten the deal for New York. The last legislation that he drafted was projected to generate around $100 million annually, of which New York would collect 15 percent in taxes, or $15 million. While that may seem like a lot to the average citizen, those numbers aren’t much when you consider the size of New York’s overall budget.

What’s Ahead for Gambling in New York?

For now, iGaming in New York is in a state of “wait and see,” and it’s unlikely that Bonacic will be able to push ahead legislation any time soon. Industry analysts predict that lawmakers in Albany will wait until all of the latest casinos approved by the state are open and running first, before any real attention will be paid to the subject of iGaming.