New York iGaming: Lawmakers Renew Push In 2026 After NYC Casinos Get Go-Ahead

Jan 8th, 2026 1:02 PM EST

Now that Empire State has cleared the way for three "Las Vegas Style Casinos" in The Big Apple, legislators again this year will determine if the timing is right to legalize New York iGaming.

State Sen. Joseph Addabbo Jr., chair of the Senate Racing, Gaming and Wagering Committee, reintroduced legislation on the first day of the 2026 session. His bill authorizes and regulates online casinos statewide, marking the fourth consecutive year he has pushed the issue in Albany. This is a big win for the best online casinos.

Addabbo’s proposal, Senate Bill 2614, would legalize online casino games and iLottery sales. It also allows commercial casinos, video lottery terminal facilities, tribal casinos operating under compact, and existing online New York sports betting operators to offer iGaming.

A companion measure, Assembly Bill A05922, sponsored by Carrie Woerner, ensures the issue of iGaming will again receive consideration in both chambers.

35 Players redeemed today!

100% Deposit Match up to $1,000 Plus $25 On The House
Promo Code: BOOKIESCAS

Bonus Code

BOOKIESCAS

Visit Site

Gambling Problem? Call 1-800-GAMBLER. Must be 21+. MI, NJ, PA and WV only. New Customers Only. Please Gamble Responsibly. Visit [http://BetMGM.com|http://BetMGM.com/] for Terms and Conditions. All promotions are subject to qualification and eligibility requirements. Rewards issued as non-withdrawable site credit/Bonus Bets unless otherwise provided in the applicable terms. Rewards subject to expiry.

Bill Mirrors Prior-Year Efforts, With Defined Costs and Limits

The legislation is identical to the bill Addabbo filed in January 2025. It now lies with to the Senate Racing, Gaming and Wagering Committee. Here's a look at the key numbers and elements:

iGaming tax rate: 30.5% of gross gaming revenue, with operators barred from deducting promotional credits or bonus bets

License Fee: $2 million per casino, VLT facility, or eligible operator

Independent Contractor Fee: $10 million licensing to host an iGaming platform and display its own brand

Games Allowed: Table games, slot machines with spinning reels, poker tournaments, and live dealer games

Online lottery: Legalized

All interactive gaming servers would be required to be located at licensed New York gaming facilities, reinforcing regulatory oversight. The bills also authorizes the Gaming Commission to establish rules governing interstate gaming compacts, laying the groundwork for potential multi-state online poker.

How Much Revenue Is At Stake?

Addabbo has also pointed to the December enactment of his bill banning sweepstakes casinos as another key shift, opening the door for more lost revenue and arguing that removing those unregulated platforms clears space for a regulated iGaming market.

Addabbo has long argued that iGaming could generate significant new revenue for the state, estimating annual tax proceeds of up to $1 billion — comparable to New York’s mobile sports betting haul.

In 2024, the state collected more than $1.04 billion in sports betting tax revenue under its 51% tax rate. Top online casino apps typically generate higher gross revenue than sportsbooks, strengthening the fiscal case, despite a lower tax rate.

Labor Opposition Still Looms

The biggest remaining obstacle remains organized labor, particularly the Hotel and Trades Council, which has opposed iGaming over concerns it could cannibalize brick-and-mortar casino jobs across the state.

The bills include provisions earmarking at least $25 million annually for employee training, responsible gaming education, health initiatives, and workforce development.

Whether that is enough to shift opposition remains unclear, but with sweepstakes platforms sidelined and downstate casinos settled, Addabbo is signaling that 2026 may represent New York’s clearest path yet toward legal online casinos.

Downstate Casino Process No Longer a Roadblock

For the first time since 2023, the downstate casino licensing issue is no longer hanging over the iGaming debate.

In December, the New York State Gaming Commission awarded licenses to Bally’s Bronx, Resorts World New York City at Aqueduct, and Metropolitan Park in Queens — the latter backed by Hard Rock International and New York Mets owner Steve Cohen.

The completion of that politically sensitive process cleared the way for $15 billion in development and removed what many lawmakers viewed as a prerequisite to considering further gaming expansion. Gov. Kathy Hochul and legislative leaders said no additional gaming measures could advance until the three NYC casinos received clearance.

35 Players redeemed today!

New Players: Get 500 Casino Spins on Cash Eruption Games and 24-Hour Lossback up to $1,000 in Casino Credits

Bonus Code

No Code Required

Visit Site

Gambling problem? Call 1-800-GAMBLER (MI/NJ/PA/WV) or visit www.1800gambler.net (WV). 21+. Physically present in MI/NJ/PA/WV only. Void in ONT. Eligibility restrictions apply. New customers only. Must opt-in to each offer. LOSSBACK: Min. net loss of $5 on eligible games to earn 100% of net losses back for 24 hours following opt-in. Max. $1,000 issued in Casino Credits for select games that expire in 7 days (168 hours). SPINS: Min. $5 in wagers req. Max. 500 Casino Spins for featured game. Spins issued as 50 Spins/day upon login for 10 days. Spins expire 24 hours after issuance. $0.20 per Spin. Game availability may vary. Rewards are non-withdrawable. Terms: casino.draftkings.com/promos. Ends 1/4/26 at 11:59 PM ET.

About the Author

Bill Speros

More About Bill

Bill Speros is an award-winning journalist and editor whose career includes stops at USA Today Sports Network / Golfweek, Cox Media, ESPN, Orlando Sentinel and Denver Post.