Bill to Legalize Online Poker Introduced in New York

New York would legalize and tax internet poker games under a bill introduced by Republican Senator John Bonacic (l.). The bill would set a tax rate of 15 percent of overall gaming revenue and operators would pay a $10 million licensing fee under the bill. The proposal, however, is not expected to pass this year.

New York could legalize online poker under a bill introduced to the state legislature.

The bill would allow New York to license and tax Internet poker games form up to 10 different providers under a proposal from Republican state Senator John Bonacic.

But Bonacic, who chairs the Senate Committee on Racing, Wagering and Gaming, said he doesn’t expect the bill to pass this year.

Bonacic said he wants to see the impact of four privately owned casinos authorized by voters on the state before moving to legalize online gambling. Still, New York needs to begin considering how to effectively regulate online gambling, he said.

“I don’t intend to push this this year,” Bonacic told the Associated Press. “But we need to start a discussion.”

Bonacic said the legislation is needed to protect New York consumers from unlicensed offshore online gambling sites as well as to prevent underage gambling and combat problem gambling.

Operators would pay $10 million licensing fees and taxes equal to 15 percent of their gross revenues, under the bill. The proposal only allows online poker and not other forms of online gambling such as casino games and slots.

The bill has no companion legislation in the state Assembly and sits with Bonacic’s committee.

Even though the bill is not likely to advance this year, it is likely to land squarely in the national debate developing over online gaming.

Billionaire casino owner Sheldon Adelson has launched an effort to ban online gaming in the U.S., and two bills to outlaw internet gambling have been introduced in Congress.

Meanwhile supporters of online gaming, such as Caesars Entertainment, which already offers virtual gambling in New Jersey and Nevada, and MGM Resorts International—both supporters of a coalition created to fight Adelson’s efforts—came out in support of Bonacic’s bill.

“New York would be an extraordinary market for this type of entertainment,” MGM Resorts International President Bill Hornbuckle said in a statement. “We are excited by the opportunity to offer online poker to New York players and will pursue it aggressively.”

 

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