New York iGaming Bill Dead Again as Hochul Stays Silent

⏱ 3 min read

New York's online casino push has collapsed for the fourth consecutive year. State Sen. Joseph Addabbo (D-Queens) withdrew Senate Bill 2614 in late May after concluding that Gov. Kathy Hochul would not sign the legislation even if it cleared both chambers — a conclusion he reached as the June 4 legislative session deadline approached with no executive backing materialising.

The failure leaves New York without a regulated iGaming market until at least 2027, despite the state generating a record $26.3 billion in sports-betting handle in 2025 and sitting on a projected $34 billion three-year budget deficit that Addabbo and state comptroller Thomas DiNapoli have repeatedly flagged as a prime argument for expanding online gambling revenue.

---

What Happened With SB 2614

Addabbo introduced Senate Bill 2614 on January 7, 2026 alongside a companion measure, Assembly Bill 6027, filed by Assemblywoman Carrie Woerner. The bill proposed a 30.5% tax rate on net gaming revenue — well below the state's 51% sports-betting rate — and would have permitted regulated online slots, table games, live dealer products, and poker for New York residents through licensed digital platforms.

Eligible operators would have included existing commercial casinos, video lottery terminal facilities, tribal casinos operating under a gaming compact, and current mobile sports-betting licence holders. A separate $10 million licensing fee applied to independent platform contractors. The bill also mandated labour peace agreements and a statewide $25 million annual funding floor for workforce development and responsible gaming.

Despite Addabbo's belief that the bill could have passed both the Senate and Assembly on its own merits, he pulled it before a vote was called, citing the futility of advancing legislation the governor would likely veto.

---

Hochul's Position and the Governor Factor

Gov. Hochul has never publicly endorsed iGaming or any regulatory framework for online casino play. Her office declined to signal whether she would sign such legislation if it reached her desk. Addabbo's assessment — "the governor would probably not sign it" — reflects a consistent pattern: Hochul excluded iGaming from her executive budget in every prior cycle and has instead channelled gambling-related political capital into responsible-gaming initiatives, including measures targeting minors in online sports betting.

Industry observers note that in every US state where iGaming has been legalised, the governor actively drove the process. Without executive sponsorship, legislative champions face a structural dead end regardless of chamber support.

---

The Revenue Case Addabbo Can't Ignore

The economic argument for iGaming in New York has strengthened considerably. State comptroller DiNapoli projects a budget shortfall of $34 billion over three years. Sports betting already contributes $1.32 billion annually in tax revenue to public schools under the current 51% rate, but Addabbo has projected iGaming could add a further $475 million per year — a figure some industry analysts say is conservative given New York's population and the performance of neighbouring markets.

• Pennsylvania and New Jersey each saw iGaming revenue exceed land-based casino revenue for the first time in 2025, underscoring the channel's growth trajectory.
• The American Gaming Association estimated in August 2025 that unregulated and offshore operators generate $53.9 billion annually across the US, costing states more than $15 billion in lost tax revenue.
• New York enacted a ban on sweepstakes-casino platforms in December 2025, removing a grey-market release valve without providing a licensed alternative.

---

How New York Compares to Legal iGaming States

Jurisdiction	iGaming Status	Online Casino Tax Rate	2025 Sports Betting Handle
New York	Not legalised (SB 2614 dead)	Proposed 30.5%	$26.3 billion (#1 US)
New Jersey	Legal since 2013	17.5% – 15%	$12.2 billion
Pennsylvania	Legal since 2019	54%	est. $8 billion+
Michigan	Legal since 2021	8.1% – 28%	est. $4.5 billion
Connecticut	Legal since 2021	18%	est. $1.8 billion

Only eight states had legalised real-money online casinos as of June 2026: Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. New York's absence remains the most consequential gap in the US iGaming map.

---

What Happens Next

Addabbo intends to reintroduce legislation in 2027, essentially a third reboot of the same framework. The senator has pushed iGaming bills in four consecutive sessions and has indicated he will continue until the Empire State acts. Whether Hochul's position shifts will depend on three variables:

• Whether fiscal pressure from the $34 billion projected deficit moves the governor toward new revenue sources ahead of her expected re-election campaign.
• Whether the continued growth of iGaming revenue in Pennsylvania and New Jersey — both of which surpassed land-based casino revenue in 2025 — makes the case politically undeniable.
• Whether downstate casino licence holders, who have now secured their retail positions, lobby aggressively for a digital extension of their operations.

For operators and bettors, the practical reality is unchanged: New Yorkers seeking regulated online casino play must cross into New Jersey. The closest fully licensed market remains accessible only in person or at registered locations within that state.

---

Sources

Reporting draws on legislative filings, official gaming commission data, and coverage from iGaming trade publications and specialist legal-betting outlets.

Every state that has iGaming, it's because the governor of that state wanted it.

— Sen. Joseph Addabbo, Chair, NY Senate Racing, Gaming & Wagering Committee · Gambling Insider, January 2026