NY Makes Progress With Positive iPoker Committee Vote

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Monday, March 7th, 2016 | Written by Adam Brown

Industry analysts generally agree that Pennsylvania will be the next state to join Delaware, Nevada and New Jersey in legalizing online poker. After Pennsylvania, California is believed to be the next most likely US markets to end the prohibition on iPoker, but what about the state that’s home to the largest city in the United States?

Well, it seems that hopes of online gambling becoming legal in New York in the near future may have received a significant boost after S5302B, a piece of iPoker legislation introduced by State Senator John Bonacic last year, was unanimously aproved by the Senate Racing, Gaming, and Wagering Committee in February. Encouragingly, this was the very first time any such bill was voted upon in the state Legislature, with other similar bills having fallen at the first hurdle.

Current State of Poker in NY

As in most other states in the US, online poker is completely illegal in New York. Current laws prohibit any type of gambling online, and there are fines and penalties that can be levied against those caught playing on illegal offshore websites. New York does allow for land-based gambling, but currently, the only legal casinos are those operated by Indian tribes within the state’s borders.

Recent History of NY iPoker Legislation

Although online gambling is not currently legal in the Empire State, one state legislator has been working to change that for some time. Assemblyman J. Gary Pretlow has spoken publicly about a desire to legalize online poker in New York on many occasions. In 2014, he introduced a bill that would have made it legal for New York residents to take to the virtual tables, but the bill didn’t get beyond the Assembly Committee on Racing and Wagering. Pretlow said he would not give up his fight to legalize iPoker, but in 2015, he did not try to reintroduce legislation as many proponents of online poker hoped that he would.

A Second Try

The current Chairman of the New York Senate Racing, Gaming and Wagering Committee is picking up where Pretlow left off. In May 2015, John Bonacic introduced a piece of legislation called S5302B designed to put in place a system for regulating and legalizing online poker. The bill did not leave his committee at the time, but a hearing did take place in early February to discuss the legislation. A house version of the bill was also introduced, leading to an amendment to S5302B to ensure that the bills align.

In a positive development, S5302B was subsequently voted for by 9-0 in Bonacic’s committee, and as he later explained:

“S.5302-B took a necessary step forward today with its vote out of the Racing Committee. The Bill now goes to the Finance Committee and I anticipate having ongoing discussions with my colleagues in both Houses regarding this bill as session moves forward.”

Details of S5302B

So what is included in Bonacic’s bill? Here are a few of the details:

– The Bill will allow for up to 10 licenses for online poker to be issued in New York.

– To obtain a license, an operator will need to pay $10 million.

– Once a license is acquired, it will remain in effect for 10 years.

– Gross gaming revenue generated by iPoker sites will be taxed at a rate of 15 percent.

– The Bill will allow New York to enter into an interstate compact with Nevada, Delaware or another state that has online poker in order to improve liquidity at the tables.

– The New York State Gaming Commission will be responsible for enforcing the regulations put in place by the laws and for ensuring compliance among licensed operators.

New York Not Anti-Gambling

Considering the lack of progress of past iPoker bills, as well as the recent crusade against daily fantasy sports sites, New York has gained a reputation of being anti-gambling. The latest development, however, suggests New York is simply concerned with ensuring that any regulation sufficiently addresses the need for player protection, as well as providing New York with the best possible tax revenues. Despite Bonacic and his allies likely facing an uphill battle, S5302B seems like a step in the right direction, and commenting on matters, executive director of the Poker Players Alliance, John Pappas explained:

“It would be a mistake for New York to wait for its brick-and-mortar casinos to go online. Moving Internet poker legislation now would establish an existing customer base of poker players for brick-and-mortar casinos when they open their doors for business.”