Second Online Casino Gaming Bill Introduced in New York

The New York Assembly has been introduced with a second bill seeking to legalize interactive casino gaming in the state. Sponsored by Assemblyman Gary Pretlow, A09436 is now joining the previously proposed S08412 by Sen. Joseph Addabbo.

Operators and Independent Contractors

The partisan bill that was introduced this Monday by Assemblyman Gary Pretlow defines interactive gaming as an activity that involves wagers on casino-style games where wagering is made via virtual or electronic means from a location within the state and is electronically transmitted to a gaming facility legally authorized to accept wagers.

A09436 also defines authorized games as any slot or table game that have been deemed compatible with the public interest and found suitable for online use after a period of testing. The term also includes gaming tournaments in which players compete against each other.

The bill states that “a casino operator may use up to two mobile interactive gaming wagering platforms brands for authorized games” but the platforms should have been reviewed and approved by the NYS Gaming Commission. Independent contractors may also display their brands on the platform in addition to the operator brand.

Registration Fees and Taxes

Online casino operators will be subjected to a one-time fee of $2 million while any independent contractor providing an interactive gaming wagering platform will face a one-time fee of $10 million as a condition of approval.

Registration with the NYS Gaming Commission will be valid for a period of 10 years and the regulator will come up with a process for registration renewal. All registered online casino gaming operators will be published on the commission’s website for public use.

Casinos willing to register as online gaming operators shall agree to provide a site for mobile interactive gaming wagering server to an Indian tribe with no agreement with another casino, charging only the direct and actual cost of hosting the server and other equipment.

Indian tribes willing to register as an interactive gaming wagering operator should abide by the same rules applied to commercial casinos and also waiver its exclusive geographic right to provide interactive mobile gaming wagering.

Mobile interactive wagering in New York will be subdued to a 25% tax on the gross gaming revenue. Tax revenue will be deposited to the state lottery fund to support education. Any financial sanctions imposed by the state’s gaming commission will also go towards the lottery fund for education.

Out of the tax revenue, the commission will allocate for problem gambling education and treatment $11 million annually in conjunction with the office of addiction services and support.