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#  Senator Addabbo’s Fresh iGaming Bill Seeks to Legalize Online Casinos in New York

February 18 2025

Written by CityWatch.

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ONLINE CASINOS - Third Time’s a charm? It may be for New York Senator Joe Addabbo, who is making his third attempt to legalize online casinos in the state. Addabbo, who is the current chair of the State’s Senate Racing, Gaming, and Wagering Committee, has tabled bill [S2614](https://trackbill.com/bill/new-york-senate-bill-2614-relates-to-interactive-gaming/2621301/), and its language is almost similar to his [2024 iGaming bill](https://www.nysenate.gov/legislation/bills/2023/S8185/amendment/A).

Currently, the Empire State only allows limited online gambling, mainly sports betting. However, online casinos, poker, and other online casino games are still banned. Sweepstakes sites, like the ones listed on[ Slots Fan](https://www.slotsfan.com/), have been able to accept NY players due to their sweepstakes model, but that too might be ending for the following reasons:

- High tax rate: The bill proposes a 30.5 tax on online casino revenue. This is more than double the online gaming tax rate in New Jersey
- Restrict participation: Like other states where online gaming is legalized, this bill seeks to limit participation to those physically present in New York
- The bill proposes that $25 million be set aside to support the online gaming workforce
- Unauthorized gaming sites, especially offshore sites, will receive a three-year ban
- The bill also seeks to regulate online lottery sales to curb unregulated gambling
- All gambling servers will only be located in state-licensed casinos

### Sweepstakes are on the chopping board

The New York Senator has shown a desire to curb the rise of sweepstake casinos by either regulation or banning. During a recent podcast with [City and State](https://www.cityandstateny.com/), Addabbo stated that there is an existing loophole for sweepstake operators that appeal to bettors, especially young adults.

“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” the senator stated. “Many sweepstakes' operators are located offshore, making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” he added.

Addabbo revealed that sweepstakes are allowing bettors to pay for virtual coins and win more coins than they can redeem for cash. “The use of money to play a game and win more money is simple gambling and should be safely regulated,” the senator added.

Sweepstake operators use free-to-play casino-like games to entice gamblers. They use sites that mimic video and casino games to entice players to buy Gold coins in exchange for sweepstake coin tokens. The players can then join sweepstakes for gifts and cash prizes. However, sweepstakes are never bought directly, and they have no intrinsic value; their operations are unregulated, creating a loophole.

Sweepstake casinos are legal in several states, including the Empire State. They allow players to play table games, live dealer games, and slots for free, offering opportunities to buy coins that they can redeem for cash.

“To close this loophole, I will work to ban or incorporate Sweepstakes Casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for iGaming as a safe, effective alternative for online casino enthusiasts,” he stated.

He further stated, “By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents.”

“Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins,” he explained.

He concluded, “I encourage my colleagues and the Governor to take action against unregulated sweepstakes casinos while reconsidering the benefits of allowing legal iGaming operators to provide sanctioned services in a popular and ever-growing industry.”

### S2614 does not include MSIGA

The bill does not mention MSIGA (Multi-State Internet Gaming Agreement). Currently, there are five states in the MSIGA, including New Jersey, Nevada, Delaware, Michigan, and West Virginia. Pennsylvania will be on this list in the next few months. Leaving out language that allows New York to join MSIGA, might make it easier for this iGaming bill to pass. It eliminates any concerns of this state being answerable to other states in online gaming matters.

### What next?

S2614 bill has already been assigned to the state’s Senate Racing, Gaming, and Wagering Committee. While the fate of this bill will be determined in a few months, there are indications it may get enough support. If enacted, the bill would put the Empire State alongside states like Connecticut, Pennsylvania, and New Jersey, where online casinos are legal and thriving.

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