Online casino legalization not included in New York Governor’s 2025 state budget
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Online gaming legalization has been dealt a potential setback following the publication of New York State Governor Kathy Hochul’s executive budget for 2025.
Igaming was not included as part of Governor Kochul’s budget, which totals $233bn for the year, representing a 4.5% year-on-year (YOY) increase.
The budget included no mention of the projected $475m in annual tax revenue that Addabbo estimated in his bill SB 8185.
However, the governor did include some references to the industry, including maintaining the current pari-mutuel wagering structure in the state. Kochul intends to extend the current pari-mutuel tax rates and simulcast revisions, as well as extending the use of capital funds by an as yet unnamed off-track betting corporation.
Kochul also mentioned that if land-based casinos are allowed in the state, then an estimated $231m to $413m in incremental annual tax revenue from the casinos will be awarded to the New York Department of Transportation for ongoing operations.
By not including anything igaming-related in her 2025 budget, Kochul has potentially signaled that any changes to legislation will not occur till 2025 at the earliest.
The industry had held out hope for change with Senator Addabbo’s bill, which was another attempt to legalize the industry following his failed attempt to legislate the vertical in the Empire State last year.
In SB 8185, the senator proposed a 30.5% tax on GGR and a $2m license fee, as well as an obligatory 0.02% tax on annual revenue to go towards employee training, amounting to a minimum of $25m each fiscal year.
