As more states face 2024 and 2025 budget shortfalls, some are looking to online gaming as a potential option to bring in additional revenue.
Sports betting seems to be serving as an example of the opportunity available by allowing Americans to wager online or via cell phones. In many states, officials report more than 80% of all wagers are made using mobile phones. Now adding online casino games and poker may be the next step for many states.
“What we’re seeing is that mobile sports betting in New York is being perceived as the number one product in the country,” state Sen. Joseph Addabbo Jr. (D) told Poker Industry Pro in November. “We should build upon that. The timing for iGaming is perfect in the sense that we’re showing that New Yorkers have the propensity and the desire to game with a device, as well as going through a brick-and-mortar site.
A Growing List
Online poker helped launch legalized U.S. iGaming in New Jersey, Delaware, and Nevada in 2013 with the industry celebrating a decade in operation last year. Others now on the iGaming train include Pennsylvania, Michigan, Connecticut, West Virginia, and Rhode Island.
New York could offer a major addition to that total. In January, Addabbo introduced a bill as legislators hope to find a solution for a potential budget shortfall as high as $7 billion for fiscal year 2025. Some believe iGaming could produce up to $1 billion per year for the state.
“It’s a good bill,” Addabbo told NY1. “We got a lot of input from a lot of individuals, but it’s a starting point. It’s a starting point where I’m hoping that we can have these kinds of discussions during the budget process.”
The proposal calls for a 30.5% tax rate and $2 million licensing fee, and would also legalize online lottery play and poker as well.
The Empire State isn’t the only region considering legalization. State Sen. Ron Watson (D) in Maryland also introduced an online gaming bill last week. The plan includes a 47% tax rate and operators could partner with gaming entities already in the state.
“Many view this as an additional revenue stream, currently projected to make between $30 million to $40 million,” Watson told Maryland Matters. “Here in the state of Maryland, we’re already projecting a $400 million deficit. We need additional revenues, and we have a lot of bills to pay with respect to our educational goals.”
Even Hawaii, which is one of the few states in the country with no legalized gaming, saw a push toward online sports betting and poker in recent days. Sen. Ronald Kouchi (D) has introduced legislation in the senate and a companion bill has also been filed in the house.
Unlike most states, the bill includes a single-operator setup as seen in Rhode Island for iGaming and in New Hampshire for sports betting. The senate bill details a profit-sharing plan with the government taking 70% of revenue in the first year, with that number decreasing by 5% each year until dropping to 5% in the 14th year.
Tax revenue from the plan would fund the state’s wildfire fund, for prevention measures and to aid victims. The state is dealing with significant costs from the August wildfires in Maui, which caused more than 100 deaths and significant property damage.
Whether any of these proposals are passed remains to be seen, but it appears more states are at least considering adding online gaming and that may continue in the coming years.
