New York is a big state with a large population and a strong state government. New York also enjoys a variety of legal gambling options, including many Indian tribal casinos, several first class horse tracks, and a highly popular state-run lottery. New York historically has had some of the most severe gambling laws in the country and it is still not the most liberal state when it comes to casinos or online gambling. Fortunately, in the last few years, there has been an evolution in that respect, notably to help support the state’s horse racing tracks.

Is Online Gambling Legal In New York State

New York’s state legislature passed bills (S 1282 and S 7900 in the state Senate, and A 5438 and A 10322 from the state Assembly, respectively) to legalize sports betting at its commercial casinos and even got everything approved via voter referendum as well a few years back. However, none of these pieces of legislation could actually take effect until the Professional and Amateur Sports Protection Act of 1992 (PASPA), which limited sports betting to Nevada and a few other states, was stricken from the federal legal rolls.

As of May 14, 2018, the US Supreme Court has decided to do just that via a 6-3 majority decision. Chief Justice John Roberts, along with Anthony Kennedy, Samuel Alito, Clarence Thomas, Elana Kagan and Neil Gorsuch voted to repeal PASPA, while Stephen Breyer concurred but issued a separate opinion and Sonia Sotomayor and Ruth Bader Ginsburg dissented. That’s all well and good, but what does the Supreme Court’s sports betting decision mean for New York, which is already served by legal offshore sportsbook sites and has been for years?

First of all, the Empire State – along with every other state in the Union – is now free to pursue whatever policies it wants regarding sports betting. Since NY already passed laws of its own to that effect, it has a huge head start on most other states looking to legalize, regulate and tax their newly minted sportsbooks as soon as they are up and running. Secondly, the New York legislature will still have to hammer out all the details as far how to tax and regulate sports betting inside its borders before opening the doors on a casino sportsbook. Still, experts expect that New York will be offering legal sports betting inside the state lines within months at the latest, and, in the meantime, the repeal of PASPA will have no effect on the operation of New York’s favorite legal offshore sportsbook websites.

Throughout the U.S., states that permit online sports and casino wagering are experiencing an impressive influx of tax revenue from online gambling operators. States like New Jersey, Indiana, Pennsylvania, and Michigan are reporting outstanding gambling revenue numbers from both sports betting and online gambling operations.

For a struggling state like New York, there is a growing need to find other sources of tax revenue to mediate growing financial problems. According to New York state Sen. Joseph Addabbo (D-Queens), online sports gambling is getting another look for that very reason.

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It's important to note that neighboring states like Pennsylvania and New Jersey are raking in hundreds of millions of dollars off the gambling efforts on New Yorkers. It's quite easy for New York sports gambling enthusiasts to cross state borders to place their wagers and then return home.

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In regards to the state not going after such a lucrative source of much-needed revenue, Addabbo stated: “We can’t decline revenue. We don’t have the luxury.”

Is Online Gambling Legal In New York State

The good news for New York gamblers is the current legislature has shown an interest in taking another look at Senate Bill 17D. As chairman of the Racing, Gaming, and Wagering Committee, Addabbo is doing all he can to keep this bill alive. He is quick to point out that while the state is facing deep spending cuts in healthcare and education, this could be a good way to save jobs.

It's worth noting that while retail sports betting is available only at upstate New York commercial casinos and tribal gaming properties, online gambling legislation has gone largely ignored.

At first, Governor Andrew Cuomo made clear it was unlikely that he would sign such legislation over a variety of concerns and issues. Heading into this year, the legislature was looking forward to reintroducing the bill in time for this year's election. However, other important issues arose like COVID-19, social injustice issues, employment, and unemployment.

Is Online Gambling Legal In New York State

As things begin to settle down, it will be interesting to see if Governor Cuomo is willing to set aside his concerns. Previously, he used the argument of unconstitutionality as to the basis for throwing cold water on this hot topic. He was referring to concerns over the DOJ reversing its decision related to the Wire Act of 1963. That law currently makes it illegal to use a money-wiring system to fund sports betting accounts or payoff sports betting debts.