Since 2018, lawmakers across all 50 states have been posed with varying questions on how much, if at all, to legalize and regulate gambling activity. Much of that comes from the 2018 Supreme Court decision on sports betting, yet each state has a unique history with gambling, and that plays into the wider picture of legislation.
As for the state of New York, well, things have changed in recent years. Online sports betting is now legal, and there are plans for more land-based casino resorts, particularly those super casinos planned for NYC, including one owned and operated by NY Mets owner Steve Cohen.
Yet, while Albany has been changing course on many gambling markets, so far lawmakers have been rebuffed in legalizing iGaming, i.e., online casino gaming. New bills will be introduced in 2026, as is the case in other states, such as Illinois, but it’s far from certain that they will get anywhere near passing.
Is New York missing a trick? Or, more aptly, missing out on some juicy tax take? You only need to look across state lines to see that New Jersey online casinos are booming, and they are helping the state’s tax revenue. In 2025, the internet gaming win was close to $3 billion, putting the tax take close to $600 million.
A high tax take is alluring for lawmakers
Almost all proposals for online casino gaming in New York have high tax rates for iGaming platforms – the most recent bill’s rate is set at 30.5% – so you can appreciate the allure for lawmakers. Moreover, there are also hefty license fees paid by operators. Indeed, the huge volume of mobile sports betting handle in New York has demonstrated how lucrative it could be.
The arguments against are multifaceted, yet at times they should be considered more nuanced than they seem. For instance, some argue that the introduction of universal access to online casino gaming could lead to increases in problem gambling. However, there is also a counterargument that not having legal online casino gaming can push players to use unlicensed and offshore platforms, which they can access by using VPNs.
The most compelling argument against is perhaps what happens to land-based casinos, and all the associated economic benefits they have in areas like tourism and jobs. It is again a complicated situation, as many casino resorts will operate online casino services, or at least partner with providers who do. This has been the case with many of the big resorts in Atlantic City, and the jury is out on whether it helps or hinders the take on the casino floor.
Atlantic City has faced several types of pressure
AC has had a rough ride in recent years – impacted in more areas than just its casinos. Indeed, with the introduction of these new super casinos in New York, plus venues opening in neighboring states like Pennsylvania, the pressures on those resorts could continue. Yet, it seems clear that introducing online casino gaming increases overall gaming revenue – as is the case in New Jersey – it can shift the center of gravity away from the resorts, and that impacts areas like jobs and the local economy.
Thus, there is a lot to weigh up for lawmakers. They can look to New Jersey and see the tax revenue from iGaming, or they may look to Nevada, which, while obviously famous for liberal gambling laws, has decided to keep online casino gaming illegal, partly to ensure that its famous land-based casinos keep thriving. It’s a conundrum for lawmakers in NY, and we shouldn’t expect a resolution anytime soon.
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