New York Online Casino Bill Marks Historic Progress Early in 2016

Events & Reports

The year has begun with several US states discussing the potential legalization of online gambling options and online poker, in particular. And the state of New York has even made certain progress towards the materialization of the plan to introduce online variants of the game within its borders.

Last year, State Senator John Bonacic introduced what has been designated as S5302B. Early in February, the bill was unanimously voted in favor of by members of the Senate Racing, Gaming, and Wagering Committee, which, as it happens, is chaired by Sen. Bonacic himself. Here it is important to note that despite of the fact there had been several similar bills to be introduced to the state Legislature, none of them had come even closer to being voted on.

The positive vote on S5302B was so important due to two other reasons, apart from the aforementioned one. The fact that the said vote occurred so early in the year pointed to the fact that New York legislators consider the legalization of online poker an important matter, or at least one that deserves to be paid attention to in the first months of 2016. What is more, as mentioned above, all nine members of the Racing, Gaming and Wagering Committee approved the effort. Although the bill has achieved some small success, it still has quite a long way to go before being passed into law. However, this first approval bodes well for its progress in the Legislature.

Generally speaking, S5302B provides for the legalization of certain games of skill, i.e. poker, within the state’s borders. It also contains provisions for the way the industry would be regulated, how operators would be licensed, how they would be taxed, and a number of other important matters. Measures for the protection of vulnerable players have also been included.

After the positive vote by the Racing, Gaming and Wagering Committee, the bill was next passed to the Finance Committee. Members are to review and vote on it. Sen. Bonacic has previously said that he expects both Houses to discuss the bill as this year’s legislative session progresses.

First talks regarding the potential legalization of online poker in New York started in 2013. Back then, legislators pointed out that this move may provide the state with additional revenue to boost the budget. The first legislation on the matter (S6913) was introduced by none other than Sen. Bonacic in March 2014. About two months later, Assemblyman Gary Pretlow presented lawmakers with A09509, which was, in fact, very similar to Sen. Bonacic’s proposal. A year later, the latter introduced S5302, which became the basis for S5302B. As stated above, none of the three were paid any special attention or achieved any significant success in the Legislature.

Even though this may not happen any time soon, S5302B may eventually get signed into law for several reasons. In the first place, construction on New York’s first full-scale Vegas-style casinos has begun or is expected to begin relatively soon and this seems like excellent time for lawmakers to consider the expansion of the industry by the legalization and regulation of online poker.

What is more, neighboring Pennsylvania has been gradually coming closer to legalizing the provision of online gambling options and New York legislators may decide that it would be good for the state to follow their colleagues’ lead in discussing the matter more seriously and evaluating the potential benefits from an expanded gambling industry. Speaking of benefits, online poker would generate tax revenue that would certainly boost the state budget at a time when it does need a boost.

As it seems, progress on S5302B will probably be made in the months to come. However, it is not likely for the proposed legislation to be signed into law in 2016, especially given the fact that the legalization of daily fantasy sports has proved to be a somewhat more pending issue. However, passing even one legislative committee is a no mean feat and means that legislators are interested in taking into consideration what Sen. Bonacic has offered.

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