New York Senator Introduces iGaming Legalization Bill
Recommended casinos
New York State Senator Joseph Addabbo Jr. reintroduced legislation to authorize and regulate online casino gaming and online lottery sales, marking a significant step toward potential i-Gaming expansion in one of the largest US markets. Filed as Senate Bill 2614 on January 7, 2026, the proposal seeks to establish a framework for interactive gaming, including provisions for digital lottery ticket sales under state oversight. This development underscores growing momentum for modernizing lottery operations amid evolving player preferences for convenient online access.
Key Takeaways:
- Comprehensive Scope: The bill covers online casinos and lottery sales, aiming to capture untapped revenue in a state with robust retail lottery performance exceeding $10 billion annually.
- Regulatory Oversight: Places administration under the New York State Gaming Commission, ensuring alignment with existing lottery integrity standards.
- Market Implications: Could boost lottery contributions to education by integrating iLottery, addressing declines in traditional draw game participation among younger demographics.
The introduction follows years of advocacy by Senator Addabbo, chair of the Senate Racing, Gaming, and Wagering Committee, who has highlighted projected annual tax revenues of $1 billion from regulated iGaming. By bundling online lottery sales, the bill positions the New York Lottery to compete with unregulated offshore platforms and courier services that have eroded market share. Current lottery law restricts sales to physical retailers, limiting digital growth despite successful iLottery programs in states like Michigan and Pennsylvania that generate hundreds of millions in additional funds for public benefits.
Industry observers note that including lottery provisions differentiates this bill from prior attempts focused solely on casinos, potentially broadening legislative support. The proposal mandates geolocation, age verification, and responsible gaming tools compliant with World Lottery Association guidelines, while directing a portion of proceeds to bolster lottery-funded education programs. New York's lottery already ranks among the top globally, but digital channels account for less than 5% of sales, according to NASPL benchmarks.
Parallel efforts in Virginia, where lawmakers also advanced discussions on iGaming, signal regional interest in regulated online expansion. However, New York's population and existing gaming infrastructure position it as a bellwether for national trends. Challenges include reconciling with tribal gaming compacts and addressing concerns about cannibalization of retail sales, though data from established iLottery markets show net growth.
This legislative push aligns with broader industry shifts toward omnichannel strategies, where lotteries integrate digital offerings to sustain contributions amid fiscal pressures. With the session underway, stakeholders anticipate committee hearings in the coming weeks, potentially shaping the future of regulated lottery innovation in the Empire State.
Sources:
- New York State Senate official bill tracker (Senate Bill S2614, introduced January 7, 2026)
