New York iGaming Bill Dead Again as Hochul Withholds Support

⏱ 3 min read

New York's latest attempt to legalise online casino gaming collapsed before the June 4, 2026 legislative deadline after Governor Kathy Hochul refused to signal any support for Senate Bill S2614. The bill's sponsor, Sen. Joseph Addabbo — chair of the Senate Racing, Gaming and Wagering Committee and the architect of New York's mobile sports betting launch in 2021 — confirmed he abandoned the effort rather than push a bill through both chambers only to face a likely gubernatorial veto. It marks the fifth consecutive year iGaming legislation has died in Albany.

The stakes are not trivial. Analysts estimate a regulated New York iGaming market could generate $2.5 billion in annual gross gaming revenue, and iGaming advocates commissioned studies suggesting the state could collect between $500 million and $1 billion in new tax revenue per year. Meanwhile, neighbouring New Jersey posted a record $2.91 billion in online casino gross gaming revenue in 2025 — a 22% year-on-year jump — with a significant share of that activity attributed to New York residents crossing state lines to play legally.

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What S2614 Would Have Done

S2614, introduced on January 7, 2026 by Sen. Addabbo, would have established a comprehensive regulated online casino framework in New York. Its companion Assembly bill, A6027, was co-sponsored by Assemblywoman Carrie Woerner, who chairs the Assembly Racing and Wagering Committee. Key provisions included:

• Legalising real-money online slots, blackjack, baccarat, live dealer games, roulette, scratchcards, and player-vs-player poker (Texas hold'em and Omaha).
• Licensing eligibility extended to New York's nine sports betting operators, four upstate casinos, and three newly licensed downstate casinos.
• A 30.5% gross gaming revenue tax — well below the state's punishing 51% sports betting tax but higher than New Jersey's 15% iGaming rate.
• One-time licensing fees of approximately $150 million per operator.
• A mandate that live dealer studios be physically located within New York state lines.
• Oversight by the New York State Gaming Commission, with mandatory deposit limits, age verification, and self-exclusion tools.

Addabbo said he believed the bill had the votes to pass both chambers on its merits, but without the governor's endorsement he concluded the effort was futile before the session closed.

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Why Hochul Killed It (Without Saying So)

Governor Hochul never issued a formal veto or public statement opposing the bill. Her office simply declined to endorse it, leaving the bill politically stranded. Political observers point to several factors behind her silence.

• Brick-and-mortar casino licensing: New York awarded full gaming licences to three downstate casino projects — including Resorts World New York City (in Addabbo's own Queens district), Bally's Bronx, and Hard Rock Metropolitan Park — in December 2025. Those developers are investing heavily in physical venues, and there is political pressure not to undercut them before they open.
• Problem gambling stance: Hochul has publicly backed stricter responsible gambling measures, including a new gambling mental health institute and restrictions on minors accessing sports betting apps. iGaming expansion sits uneasily alongside that positioning.
• Union opposition: The New York Hotel and Gaming Trades Council (HTC) has opposed every iGaming bill since 2022, arguing online casinos cannibalize floor traffic and cost union members jobs. The HTC's influence within the Democratic Party makes it a formidable obstacle even when the governor is not publicly aligned with them.
• Budget calculus: New York faces a projected $34 billion deficit over three years, according to state comptroller Thomas DiNapoli. Addabbo argued this creates an urgent case for iGaming revenue, but Hochul has not included iGaming in her last two budget proposals.

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The Revenue New York Keeps Giving Away

The opportunity cost of inaction is becoming harder to dismiss. New Jersey's online casino sector generated $2.91 billion in 2025, becoming the first year in which NJ iGaming revenue surpassed the combined take of the nine physical Atlantic City casinos. Pennsylvania posted $2.78 billion in iGaming revenue in the same period. Both states border New York.

Industry observers estimate a meaningful share of that NJ and PA online casino revenue originates from New York residents who cross state lines — physically or by driving near a state border — to access geolocation-compliant apps. Without a regulated home market, New Yorkers wanting to play online casino games legally must travel to New Jersey, Pennsylvania, or Connecticut. With a $2.3 trillion GDP, New York City alone represents a consumer pool larger than most countries' entire online gambling markets.

Addabbo has repeatedly cited the state's fiscal position as justification for action, noting that unlike sports betting revenue — which state law directs to education — iGaming tax receipts would be unallocated and available for any state priority.

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US iGaming State Comparison

State	iGaming Status	2025 Online Casino GGR	Tax Rate (iGaming)	Launch Year
New Jersey	Live	$2.91B	15% (rising to 19.75%)	2013
Pennsylvania	Live	$2.78B	54% (slots) / 16% (tables)	2019
Michigan	Live	$1.7B+ (est.)	20–28% (graduated)	2021
Maine	Legalised, not yet live	N/A	TBD	2026 (law signed)
New York	Not legal	—	Proposed: 30.5%	Earliest: 2027
Virginia	Pending (2027/28 earliest)	N/A	Proposed: 15%	—

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What Happens Next

With the 2026 legislative session now closed, New York cannot revisit iGaming legislation until the 2027 session at the earliest. Even if a bill passed promptly next year, the regulatory build-out — licensing, platform testing, game certification — typically takes six to twelve months, meaning live apps would be unlikely before mid-2028.

Addabbo has not indicated he will abandon the push. He has been the driving force behind every successive bill since 2022 and was the key figure in winning online sports betting approval in 2021. Industry observers note that Hochul's re-election campaign may change her political calculus: if she faces pressure to demonstrate fiscal responsibility while closing a multi-billion-dollar deficit, iGaming tax revenue — unallocated and potentially worth hundreds of millions annually — could become a more attractive line item before the 2027 session begins. Maine's anticipated iGaming launch later in 2026 and continued record-breaking figures out of New Jersey and Pennsylvania are expected to sharpen that argument considerably.

For operators holding existing New York sports betting licences — DraftKings, FanDuel, BetMGM, Caesars, bet365, and four others — S2614's collapse means another year without access to the most valuable untapped iGaming market in the United States.

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Sources

This article draws on primary legislative documents, official state revenue disclosures, and reporting from specialist gaming publications. Primary sources are listed first.

Do you need money for health care because of federal budget cuts, do you need money for transportation, do you need money for veterans?

— Sen. Joseph Addabbo, Chair, NY Senate Racing, Gaming & Wagering Committee · On the unallocated revenue iGaming would generate, May 2026