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New York’s Online Sports Betting Bill Clears Committee Vote; Online Poker Attached to Proposed Budget for Third Straight Year

New York’s Online Sports Betting Bill Clears Committee Vote; Online Poker Attached to Proposed Budget for Third Straight Year

Less than one week after introducing a bill to regulate sports betting, New York state senator John Bonacic (R-42) successfully steered his latest gambling expansion proposal through the committee he chairs.

Bonacic’s position as chairman of the Senate Racing, Gaming and Wagering Committee made the preliminary passage of Senate Bill 7900 a formality of sorts, so no votes were tallied. Instead, the bill – which would allow the Empire State to establish legal sports betting via both land-based and online sportsbooks – was moved on to the Senate Finance Committee without delay.

SB-7900 was introduced on March 7 and forwarded to the Finance Committee on March 13.

In a statement issued by his office, Bonacic referenced the looming U.S. Supreme Court decision which is widely expected to strike down the current federal prohibition on sports betting:

“With today’s passage of S.7900 out of the Racing, Gaming and Wagering Committee, legalized sports betting is one step closer to becoming a reality in New York State.

I thank my colleagues on the Committee for their support of this bill, and look forward to working with them and the many stakeholders, during the remainder of the legislative session to ensure that New York has the best piece of legislation possible should the Supreme Court strike down PASPA.”

In December, the Court heard oral arguments in the case of Christie v. NCAA et al, which concerns the efforts of Governor Chris Christie to legalize sports betting in New Jersey. The Garden State approved sports betting measures, both legislatively and on the ballot, with Christie signing versions into law in 2012 and 2014. Each signing prompted a slate of lawsuits from North America’s four major professional sports leagues (NFL, NBA, MLB, NHL), along with the National Collegiate Athletic Association (NCAA).

The leagues contended that New Jersey’s efforts to regulate sports betting constituted a violation of the Professional and Amateur Sports Protection Act (PASPA) of 1992 – the federal law which limits legal sports wagering to four states (Nevada, Oregon, Montana, and Delaware).

As his statement alluded to, Bonacic’s bill is contingent on a Court ruling – which is scheduled to be rendered within the next few months – striking down PASPA’s control over state-regulated sports betting:

“No gaming facility may conduct sports wagering until such time as there has been a change in federal law authorizing such or upon a ruling of a court of competent jurisdiction that such activity is lawful.”

With most legal observers and gambling industry experts in agreeance that the Court was amenable to New Jersey’s case during oral arguments, more than a dozen states have introduced bills based on the potential PASPA repeal.

California, Illinois, Iowa, and West Virginia are among the 16 states currently considering similar legislation.

Based on his plan for an 8.5 percent tax on sports wagering related revenue, Bonacic positioned the legalization of sports betting as an effective way to solidify the state’s budget:

“If allowed, sports betting will be a revenue enhancer for education in New York,” said Bonacic, who is also spearheading the online poker efforts. “We have the chance to ensure our sports betting statute is fully developed and addresses the needs of the state and all stakeholders so we can hit the ground running if and when we can authorize and regulate sports betting.”

In other iGaming news out of New York, the Senate once again included online poker in its annual budget proposal.

Buried within the massive document, which serves as a baseline for lawmakers to base their discussions with the executive branch, is a passage calling for online poker to be regulated.

The same language has been included in the Senate budget proposal for three straight years, and while that legislative body has successfully passed online poker bills in 2016 and 2017, the Assembly has refused to hold a vote.


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Louisiana Becomes the Latest State to Introduce Online Gambling Legislation

Louisiana Becomes the Latest State to Introduce Online Gambling Legislation

Louisiana just joined the list of states with an online gambling bill under consideration, courtesy of state senator Daniel Martiny (R-10).

Martiny introduced Senate Bill 322 on March 2, and at the moment, the four-page document merely provides an outline for Louisiana voters to decide the iGaming issue directly. If passed, S-322 would call for a public referendum to be held during the upcoming November election cycle.

A proposition added to the ballot in each of Louisiana’s 64 parishes would pose the following question to voters:

“Shall internet gaming be allowed to be conducted within the parish of _____?”

SB-322 is designed to give the state flexibility in implementing online gambling, as individual parishes can approve or reject the proposition through a simple majority vote. In parishes that pass the measure, the Louisiana Gaming Control Board (LGCB) would then partner with local gaming board authorities to develop a regulatory framework for licensing and supervising iGaming operations.

The bill would also establish a system whereby iGaming providers must partner with Louisiana’s licensed riverboat and land-based casinos to obtain an internet gaming license. This would follow the successful model currently utilized in New Jersey, where state-licensed casinos in Atlantic City have been linked with online poker and casino platforms since 2013. Last year alone, New Jersey’s iGaming industry generated nearly $ 250 million in revenue while sending millions into state coffers via taxes and licensing fees.

SB-322 doesn’t address taxation or licensing fees, but the bill offers a general framework for classifying legal forms of internet gambling:

“Proposed law defines ‘Internet gaming’ as any variation or composite of an authorized game that is offered through the internet, provided that such games, or variations or composites, are found suitable for use by the board and any other game which is determined to be suitable by the board.

The term includes gaming tournaments conducted via the internet in which players compete against one another in one or more games authorized by the board.”

Only players 21 and over who are physically located in a parish which voted in favor of the ballot proposition would be permitted to gamble online. Furthermore, legal iGaming wouldn’t go live in Louisiana until January 1 of 2020 at the earliest.

Martiny – who previously held a seat in the Louisiana House of Representatives from 1994 through 2008 – serves Jefferson Parish, which includes sections of the New Orleans metropolitan area. In his position as chairman of the Senate Commerce Committee, Martiny will be able to influence fellow lawmakers to support SB-322 in exchange for favorable votes on other issues.

SB-322 is the third gambling-related bill taken up by Louisiana legislators in the last week.

State representative Major Thibaut (D-18) introduced House Bill 245 – which would expand the state’s current laws on horserace wagering to include all forms of sports betting – on March 1.

On March 5, state representative Kirk Talbot (R-78) introduced House Bill 484 in an attempt to regulate the daily fantasy sports (DFS) industry.


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New York Senate Set to Pass Online Poker Bill for Third Straight Year

New York Senate Set to Pass Online Poker Bill for Third Straight Year

It’s déjà vu all over again in New York, where the state’s Senate Committee on Racing, Gaming, and Wagering voted 10-1 in favor of a bill legalizing and regulating online poker.

Senate Bill 3898 was forwarded on January 23 to the Senate Finance Committee for further review, where it’s expected to receive similar levels of support.

Last year, an identical bill was passed unanimously by Racing, Gaming, and Wagering, before a 28-9 vote moved it to the full Senate. The 2017 version of SB-3898 passed through the Senate by a 53-9 margin, marking the second consecutive year that online poker was authorized by one half of New York’s legislature.

But despite widespread support from the Republican-controlled Senate, the bill stalled out in the Democrat-dominated Assembly without ever receiving a vote.

State senator John Bonacic (R-42), the chief sponsor of SB-3898, spoke to his colleagues ahead of the committee vote to reiterate his justifications for legalizing online poker:

“There are many media reports that the [commercial] casinos aren’t meeting their revenue expectations.

This would be another tool in their toolbox to enhance revenues, if we allowed them to do it. This will be the third time that the Senate has passed this bill, and I know Assemblyman [Gary] Pretlow, who chairs the Racing and Wagering [Committee] in the Assembly, is supportive of the bill.

I know he will continue to use his best efforts to move it in the Assembly.”

For his part, assemblyman Pretlow (D-89) has promised to use his powerful position as chair of the Assembly Racing and Wagering Committee to champion SB-3898.

Even so, Pretlow has previously expressed personal reservations on the integrity of online gambling, going so far as to visit neighboring New Jersey to “study” the Garden State’s thriving iGaming industry in 2016. His hesitance to embrace the issue was widely cited as a factor in the first bill’s demise, but Pretlow reversed course last year after his fact-finding mission confirmed iGaming to be safe and secure.

In a recent interview with Online Poker Report, Pretlow laid the blame for last year’s inaction on women in the Assembly who he believes oppose gambling expansion in any form:

“It seems women are opposed to gambling or gaming, and it got a little heated.

There’s opposition to the legislation by a lot of female members of the Assembly, and the Speaker decided we should wait to get it straightened out. But now I know which ones to deal with and that’s what I’m going to do.

I’m going to redouble my efforts, as the expression goes.”

Assuming the Senate passes SB-3898 for the third time in as many years, Pretlow and his colleagues in the Assembly would reexamine A-5250, a version which essentially mimics Bonacic’s bill.

As he told Online Poker Report, Pretlow foresees several months of inaction while legislators address more pressing matters, including the state budget:

“It will probably end up being a June push again, unless there’s reasons for otherwise.

Right now we’re going into budget mode, and all February we’re lost in the budget. Then the middle of March we’ll be fighting over things, and on April 1 the budget is passed.

Then April, May and June is when all the work gets done.”

Pretlow also pointed out that New York has become increasingly isolated from a regional iGaming industry. Along with New Jersey, which recorded $ 245 million in iGaming revenue last year alone, Delaware also operates regulated online gambling. And following the passage of comprehensive gambling expansion last year, Pennsylvania is preparing to become the fourth state to establish an iGaming industry later this year.

As Pretlow frames the debate, New York can’t afford to fall further behind its regional neighbors:

“We’re surrounded by online gaming. I guess eventually we will come around.

It’s just like with marijuana. Many states are legalizing marijuana, and two years ago the governor was totally opposed.

But since we’re surrounded by Massachusetts, Vermont, New Jersey heading toward legalization and probably Pennsylvania, he’s going to rethink that. Times and situations do change.”


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