The State of New York Gambling Laws permit gambling cruises, as well as inland gambling via Class III casinos operated by various Indian Tribes, and Class II Bingo, also operated by Indian Tribes in New York. Slot machines became legal in 2001 and allow gaming operators who are licensed in New Jersey to operate in NY. As you can see, the state of NY does provide some land-based and off land-based gambling opportunities for players to participate in.

Online gaming is becoming increasingly popular among United States players and New York residents, despite the sometimes confusing legal landscape surrounding online gambling activity. The Justice Department originally claimed that online gambling is illegal under the 1961 Wire Act. Although the language of the statute clearly addresses telephonic wagering, application to Internet gambling is unclear in the act’s current form. Traditionally, this act was not designed to punish the individual bettor but the bookmaker, individual, or organization responsible for perpetuating such activity. Thus, the law may be applied to Internet bookies but not individual bettors. Furthermore, the act specifically includes sports wagering only. In late 2006 Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA), which placed stringent regulation on how online gambling-related transactions are to be processed. There are no USA federal gambling laws which prohibit or criminalize United States players from participating in online gambling activity.

Other New York Gambling Pages

Where Does The State of New York Stand On Legalizing Online Gambling?

New York Gambling and Lottery Laws - FindLaw Welcome to FindLaw’s New York Gambling & Lottery Laws Center. New York laws on gambling and lotteries regulate (and in some cases prohibit) activities such as casino gaming, horse racing, and dog racing. These laws also dictate the manner in which state lottery revenues are distributed. This ranking only list online casinos authorized in the state of New York. Note: Delaware became the first state to legalize online gambling on June 2012; New Jersey became the third state to legalize online gambling while Nevada became the first state to legalize poker. But the real prize, for the gambling industry and bettors, is online or mobile sports wagering. Currently, sports betting can only be done in person at upstate commercial and Native American casinos. Furthermore, a three-decades old tribal gaming law, the 1988 Indian Gaming Regulatory Act (IGRA), requires states to allow sports betting for tribal groups if the state authorizes the activity for non-tribal gaming operators. There are a dozen tribal casinos in New York, the majority located west of the state capital in Albany. Online Gambling Age For New York Residents New York's gambling industry has had quite a few age limits put in place, with most forms of gambling regulated by an age of 18 or 21. Few forms of gambling can be enjoyed at 18 - the lottery, bingo, dog and horse racing, and even online bingo - but this is better than nothing.

The federal government has passed legislation to limit or eliminate US-based Internet gaming, but some state governments have openly supported online endeavors in their gambling enterprises. For example, the creation of Capital OTB may signal a new era in governmentally sponsored gambling. Created by the New York State legislature, Capital OTB is designed to increase revenue earned from offtrack betting. Ostensibly, this agreement revitalizes a dying industry (i.e., horse racing) while providing funding for local programs. However, it remains unclear as to who is the primary beneficiary. Not surprisingly, state acceptance or tolerance has thus far been limited to endeavors that fatten government coffers.

The State of New York has not adopted a specific law that makes online gambling illegal. The exact legal status of online gambling under New York state laws is complex. New York state laws explicitly prohibit bets, stakes and wagers on the outcome of any unknown or contingent event including any contest, game, gaming device or gaming scheme where the result depends on an element of chance, even if the skills of the contestants play a vital role in the result. While the law does not address online gambling, NY players have been limited to legal online gambling sites located, licensed and regulated outside of the United States.

Gambling under NY state laws is an activity where a person risks or stakes something of value on the result of a contest of chance or of a future event that is not under his control or influence upon an understanding or agreement that in case of a particular result, he will receive something of value. A game of chance means one in which the result depends on an element of chance, even if the skills of the contestants play a vital role in the result. A player refers to the contestant or better who only engages in the gambling activity but does not receive or become entitled to receive any profit other than his personal winning and does not render any form of material assistance to the persons conducting the gambling activity.

Will NY Residents Break The Law By Participating In Online Gambling?

Under New York state law, there are no criminal penalties for persons who take part in a gambling activity as a player at legal licensing options such as New York sports betting sites or NY poker rooms as long as they are not based and regulated within the United States. Anyone who engages in bookmaking is not a player. Bookmaking refers to the acceptance of bets from others as a business. Bookmaking is illegal and is considered as advancing gambling activity. Taking part in any activity associated with gambling other than as a player will generally be considered as advancing gambling activity and includes without limitation:

• creating or establish a contest, game, device, scheme or activity
• acquiring or maintaining premises, equipment, paraphernalia used for the gambling activity
  inducing or soliciting persons to participate in the activity
• conducting the activity, game, contest or scheme
• arranging the financial reward
• maintaining accounts

Any person who has significant proprietary or other authoritative control over a property being used for gambling activity and knowingly allows such property to be used for the gambling activity will also be advancing gambling activity.

The offense of advancing gambling activity is a misdemeanor offense. It will be considered a felony offense if the gambling activity receives 5 bets in a day totaling $5000 ($500 in a day from lottery, enterprise or policy scheme).

What Is The Status Of Federal Online Gambling Developments?

At the present time, the question of the legality of online gambling, in general, remains unanswered. There has been virtually no ruling from a federal court that remedies the situation. As such, it is unclear as to, if any, enforcement agency has jurisdiction over online gambling. Due to this ambiguity, states have been slow to take action against online activities that violate anti-gambling statutes. With the lack of clarity available, there are no US-based online gambling sites currently in operation, however, with the recent legalization of online gambling in some form in Nevada, New Jersey, and Delaware, that is sure to change very quickly for residents of those states. Residents of other states will need to continue to patronize legal non-US based online gambling sites for the time being.

There are some high quality legally licensed and regulated online gambling sites that operate outside of the United States and that welcome US player, including New York players. There are no laws specifically prohibiting New York residents or US residents in general from visiting and participating in online gambling at these sites, including legally licensed offshore New York online casinos or online bingo halls accepting NY players. We do however recommend that you consult a professional guide (such as this one) to gain access to reputable online gambling sites which have been vetted by professional online gamblers for legitimacy within the industry, licensing and certification validity, and confirmation of the quality of security profiles present at legal New York online gambling sites.

There’s growing optimism among legislators that they will legalize New York online sports betting by Labor Day.

Assemblyman Gary Pretlow tells PlayNY that he has a commitment from assembly leadership for NY online sports betting to be part of the revenue bill. But like all politics in New York, the issue is complicated and fluid, and guarantees of action can quickly get sidetracked.

Pretlow indicated that the commitment came from state Assembly Speaker Carl Heastie. The speaker opted not to pursue a constitutional amendment bill by last week’s deadline.

“I do have a commitment that, when we do the revenue enhancement bill, this will be part of it,” Pretlow said. “I wanted to do the constitutional amendment as a backup but they told me it wasn’t necessary.”

The legislature is waiting to find out how much New York gets in a federal coronavirus relief package before beginning negotiations on the revenue bill.

NY foregoes constitutional amendment on sports betting

After New York did not include online sports wagering in the budget in April, Pretlow said he would push for a constitutional amendment bill.

“Hopefully they don’t make me feel like a fool,” Pretlow stated. “I don’t trust any of them. They either really don’t believe it needs a constitutional amendment or they just don’t want to do it. The truth is in the pudding.”

Online Gambling Legal In Ny

Sen. Joseph Addabbo Jr., online sports betting’s champion in the Senate, told PlayNY he thought it better not to do the amendment.

“The bottom line is that, if we did a constitutional amendment, it’s throwing up the white flag that we’re not doing it this year,” Addabbo said. “But I’ve warned people that, consequently, we need to do it without an amendment or it’s going to be another four years.”

Online Gambling Legal In New York

By not passing a constitutional amendment bill this year, New York couldn’t put the issue in front of voters until 2023. That could delay mobile sports betting to 2024, putting the Empire State even further behind neighboring New Jersey and Pennsylvania.

Constitutional issue explained

New York’s constitution prohibits any expansion of gambling without an amendment, which requires approval from two consecutive legislatures and a voter referendum. A 2013 amendment permits New York sports betting at four upstate casinos, but makes no mention of mobile.

The past two years, the Senate passed a bill to legalize mobile sports betting. But Heastie and Gov. Andrew Cuomo have cited constitutional issues in blocking its path.

The lawmakers used legal opinions to show that a constitutional amendment isn’t necessary. Sports betting is legal at New York casinos. The opinions argue that online wagers take place at the location of the servers on casino property.

“It’s a little ridiculous because all along Assembly leadership is telling me they had constitutional questions,” Pretlow said. “Then, when I tried to fix the constitutional issues, they said, ‘We don’t have constitutional issues. Let’s do a bill.’ I ask how and they said to put it in the revenue package.”

Details of NY online sports betting

Pretlow said he expects the language for expanded sports betting in the revenue bill to be similar to the S 17 passed by the Senate last year.

He wants to make one adjustment, changing the skins allowed per casino from one to two. He said all commercial NY casinos are in favor of multiple skins except Rivers Casinoin Schenectady.

Is Online Gambling Illegal In New York

Key components of the bill include:

• An initial license fee of $12 million.
• Tax rate of 8.5% on retail sports betting and 12% on mobile.
• 0.20% of the handle on all wagers go to professional sports leagues as an integrity fee.
• Casinos required to use official league data for in-play wagers if made available on “commercially reasonable terms” as determined by the New York Gaming Commission.
• Racetracks, off-track betting parlors, sports stadiums and arenas may partner with commercial casinos to offer sports betting through servers on their properties.
• Indian tribes also would need to partner with commercial casinos to offer mobile wagering.

Pretlow added the revenue bill will not contain expedited downstate casinos, which the governor opposes.

Will NY sports betting study come in time?

Lawmakers hoped a New York gaming market analysis would help them with their push. The New York State Gaming Commission (NYSGC) chose Spectrum Gaming Group to conduct the study in November.

The request for a proposal specifically asked Spectrum for an analysis of the potential market and impacts for online sports wagering.

Given that the gaming landscape in New York was severely affected by COVID-19, the NYSGC extended the June 1 deadline for the final report to incorporate potential impacts of the pandemic.

Addabbo indicated that he’s heard the study will be out around Labor Day, which could be too late to make an impact this year.

“I don’t know if this is going to be a useful tool for us,” Addabbo said. “I’m not happy.”