New York has embraced various forms of gambling, including brick-and-mortar casinos, sports betting, and lotteries, but online casinos remain illegal. While online sports betting has been a resounding success, the legalization of online casino gaming (iGaming) is still a topic of debate.
Lawmakers have introduced multiple bills to regulate and legalize online casinos in New York, but none have passed yet. However, with neighboring states reaping billions in tax revenue from online casinos, many believe it’s only a matter of time before New York follows suit.
Current Legal Status of Online Casinos in New York
Online casinos are not legal in New York. The only form of legal online gambling available is sports betting, which launched in January 2022. New Yorkers can also participate in horse racing betting, lottery games, and daily fantasy sports.
However, online casino games such as slots, blackjack, roulette, and poker are not yet permitted. To play real-money casino games online, New York residents must travel to states where online gambling is legal, such as New Jersey, Pennsylvania, or Connecticut.
Why Hasn’t New York Legalized Online Casinos Yet?
Despite the rapid growth of online sports betting, online casinos have faced resistance from lawmakers and regulators. Several key factors explain the delay:
✔ Concerns About Gambling Addiction – Some lawmakers worry that making online casino games more accessible will increase gambling-related issues.
✔ Competition with Land-Based Casinos – New York’s commercial and tribal casinos fear that online platforms could reduce their revenue.
✔ Regulatory Challenges – Online casinos require strict oversight, licensing, and compliance measures, which take time to develop.
✔ Legislative Priorities – While online casino bills have been introduced, other budget and policy issues have taken precedence.
However, proponents of iGaming argue that legalizing online casinos would generate significant tax revenue, create jobs, and enhance player protections.
How Much Revenue Could New York Online Casinos Generate?
States that have legalized online casinos have seen massive revenue growth. If New York were to legalize online gambling, it could become one of the largest iGaming markets in the U.S.
Projected Revenue for New York Online Casinos
| State | Annual Online Casino Revenue | Tax Revenue Generated |
|---|---|---|
| New Jersey | $1.9 billion | $250+ million |
| Pennsylvania | $1.8 billion | $500+ million |
| Michigan | $1.9 billion | $350+ million |
| New York (Projected) | $2.5 billion+ | $500+ million |
New York has a larger population and gambling market than many of these states, meaning it could easily surpass $2.5 billion in annual online casino revenue.
What Needs to Happen for Online Casinos to Become Legal in New York?
For online casinos to become legal in New York, lawmakers must:
✔ Pass a bill that regulates iGaming and sets tax rates, licensing requirements, and consumer protections.
✔ Receive approval from the Governor to include online casinos in the state’s budget plan.
✔ Establish regulatory bodies to oversee online casinos and prevent illegal activities.
✔ Ensure land-based casinos support online gambling, potentially allowing them to partner with online operators.
If a bill is passed in 2025 or 2026, online casinos could launch within 6-12 months after licensing begins.
What Would Online Casinos in New York Look Like?
If online casinos become legal in New York, they would likely operate similarly to those in states like New Jersey, Michigan, and Pennsylvania.
✔ Licensed Operators – Online casinos would partner with existing land-based casinos to obtain a gaming license.
✔ Mobile & Desktop Access – Players could gamble via casino apps and websites from anywhere in the state.
✔ Wide Game Selection – Online casinos would offer slots, blackjack, poker, roulette, and live dealer games.
✔ Secure Payment Options – Deposits and withdrawals would be processed through credit cards, e-wallets, and bank transfers.
✔ Strict Player Protections – Features like self-exclusion programs and deposit limits would be implemented to promote responsible gambling.
Popular online casino brands like BetMGM, DraftKings, FanDuel, and Caesars would likely enter the New York market.
Which States Have Legal Online Casinos?
While online sports betting is legal in over 30 states, only six states currently allow real-money online casinos:
✔ New Jersey
✔ Pennsylvania
✔ Michigan
✔ Connecticut
✔ West Virginia
✔ Delaware
New York could become the next major market, following the success of its neighboring states.
Can New York Residents Play at Offshore Online Casinos?
Many offshore casinos accept New York players, but they operate without U.S. regulations. This means:
✔ No guaranteed player protections – Funds and winnings may not be secure.
✔ Limited customer support – Offshore casinos may not resolve disputes fairly.
✔ No legal recourse – If a site refuses to pay out winnings, there’s no legal action available.
It’s always safer to gamble at regulated, legal online casinos in licensed states.
When Could Online Casinos Launch in New York?
The timeline for legalizing online casinos in New York depends on political and regulatory decisions.
Possible Timeline for Legal Online Casinos in New York
| Year | Legislative Status | Likelihood of Online Casinos Launching |
|---|---|---|
| 2024 | No active online casino bills passed | Unlikely |
| 2025 | New bills may be introduced in early legislative sessions | Possible |
| 2026 | Higher chance of approval as New York seeks new tax revenue | Likely |
Most experts believe New York will legalize online casinos by 2026, but political opposition could delay the process further.
What Should Players Do While Waiting for Legal Online Casinos in NY?
✔ Visit Neighboring States – Players can cross state lines to play in New Jersey, Pennsylvania, or Connecticut.
✔ Use Legal Sportsbooks – New York offers legal online sports betting with casinos like BetMGM, FanDuel, and Caesars.
✔ Follow Legislative Updates – Stay informed about new casino laws and regulations.
New York has one of the most active gambling markets in the U.S., so the legalization of online casinos is only a matter of time.
Final Thoughts on Online Casinos in New York
New York has been slow to legalize online casinos, but pressure from lawmakers, casino operators, and the public is increasing.
✔ Neighboring states generate billions in tax revenue from iGaming.
✔ The state faces budget deficits and could benefit from online casino taxes.
✔ Legislative efforts are ongoing, with a higher chance of approval by 2026.
While online casinos aren’t legal yet in New York, industry experts predict that the state will approve iGaming soon, opening the door for a massive new gambling market.