An online poker bill was recently introduced in New York. This was no surprise, given that iPoker discussions have advanced in recent years and legislation was expected at some point. But does this bill (S 5302) actually have a chance at getting passed in 2015? Let’s discuss this matter below, but first, we’ll look at some key points of Bill S 5302, which is authored by Republican Sen. John Bonacic.
1. No Bad Actor Clause
This is actually the second time that Bonacic has introduced online poker legislation in New York, since he authored S 6913 last year. But one big change from last year to 2015 is that there’s no bad actor language included. Instead, the New York State Gaming Commission would make determinations on which prospective online poker sites are given a license. One obvious ramification from this point is that PokerStars would actually have a chance to get into the Empire State.
2. Tax Rate and Number of Licenses
The tax rate on operators will be 15% of revenue, which is the same as New Jersey and higher than Nevada (6.75%). Also, only a maximum of 10 online poker applicants will receive licenses, and a one-time licensing fee of $10 million will be required.
3. Poker is a Skill Game
Most players understand poker’s skill element, but it’s politicians who need the convincing. Luckily, Bonacic seems pretty knowledgeable since he writes, “Poker in many instances has been defined as a game of skill and a New York federal court in U.S. v. DiCristina.” […] The game “involve[s] player strategy and decision-making and which pit the skill levels of the players against each other. As games of skill, these forms of poker do not fall under the definition of gambling as prohibited by the penal law.”
4. Interstate Poker is open
If this legislation passes, New York will have the option to enter into interstate compacts with other states. This is a huge point because, given New York’s population of 19.6m people, it can help the U.S. online poker market as a whole grow with increased liquidity.
5. Consumer Protection is a Must
Bonacic is very serious about protecting the players and mentions his mission several times throughout the bill. Specifically, he wants protection against collusion, poker bots and problem gambling. Including the poker bots in this legislation is new to me, but certainly something worth noting when considering bots that have been used in online low-stakes games.
Will the Bill pass this Year?
When Bonacic introduced S 6913 last year, he admitted that it was just to “start a discussion.” Well, the discussions have continued into the early part of 2015, and this is the first serious attempt at getting something done. One thing that could give S 5302 a boost is the fact that MGM has been lobbying hard in Albany. Furthermore, they produced a study that showed New Yorkers are spending $110 million per year at offshore online poker sites. The study also claims that New York could make between $50 million and $80 million annually from taxes.
These stats alone should give the bill a decent chance to pass the state legislation and eventually become law. However, as we’ve seen with California, even when a state recognizes that iGaming can be a good thing, there’s no timetable on when anything will get done.