New York authorities recently granted permission for the construction of three brick & mortar casinos and the empire state has plans to capitalize from the gambling industry and use the derived revenue to further the development of New York.
New York is also looking at amending its laws on online gambling and will most likely legalize online poker in 2015. It was back in 2012, New York voted in favor of online poker and caused a huge stir in the nation but failed to pass a law legalizing online gambling. Gambling compliance reports that New York legislators will debate online gambling laws during the early part of 2015 and will most likely make a final decision before the end of the year.
Morgan Stanley released a report in 2014 after studying the U.S online gambling market and estimated that by 2016 online gambling would be made legal in New York. However, New York gambling regulators will be skeptical of predictions made by gambling analysts, after neighboring New Jersey’s online gambling revenue fell well below initial estimates.
New Jersey legalized online gambling in 2013 and expected to gain a huge chunk of revenue from the industry. Over a year has passed and the online gambling market in New Jersey has been a huge disappointment so far and has not been able to generated even 50% of the initial revenues predicted.
New York gambling officials are confident that the online gambling market in the empire state will be a lot more productive because New Jersey population is around 9 million whereas New York’s population is close to 20 million. MGM resorts have been one of the main lobbyists pushing for the legalization of online gambling. MGM commissioned a recent study that revealed that New Yorker’s spend over $110 million gambling on offshore online poker websites.
New York authorities want to tap this lucrative market and capitalize on the revenue generation. The MGM study also predicted that New York would be able to bring in between $50 – $80 million in yearly taxes if it permitted intrastate online poker websites to function in New York.
State authorities will want to carefully examine the online poker bill and the proposed regulations as one of the biggest concerns state authorities have is over the safety and security of online poker websites.