Making a push for iGaming in the state Senate

Joseph Addabbo Jr. was first elected to the state Senate in 2008 after representing Southeast Queens for seven years in the City Council. Previously, as a member of the state Senate Racing, Gaming and Wagering Committee, Addabbo helped establish Resorts World New York City in Queens, legalized mobile sports betting in the state and expanded the number of casinos upstate. As chair, he proposed legislation last year to expedite the process for state officials to award as many as three casino licenses downstate, but the bill was vetoed by Gov. Kathy Hochul. This interview has been edited for length and clarity.

The bids for three downstate casinos will be due this summer. Is there any chance the winning bids won’t be selected by the end of the year? Do you wish the process were going faster?

The bottom line is this, the downstate license process has been a picture of inefficiency. We voted to expedite the three licenses in 2022 to see some action in 2023, and here we are talking about possibly June 2025 for the application to start and for the decision to be made by the end of the year. That’s a picture of inefficiency. We did the four upstate casinos in a fraction of a time.

I introduced a bill last year to look to accelerate this process. It’s aggressive, but we’re New York, we can do this. We can start the application process in August and make a decision by mid-2025. The point being is to codify a timeframe so there will be no ambiguity or question when applications will be submitted, when we’ll see revenue for the MTA, when we’ll see thousands of construction and post-construction jobs. I think the unions deserve that and the people of New York deserve that. People want to work.

My bill gets vetoed because the governor says she has a timeframe. But the timeframe means very little because it’s not codified. That’s the idea about codifying a timeframe to make it more strict, to adhere to a timeframe that benefits New Yorkers.

I am hopeful in June 2025 we start the application process, but I will be introducing in the next week or so new legislation that will incorporate the governor’s timeframe and hopefully put something in law.

What are some of the characteristics that might put certain bids over the top compared to the others?

We try to put factors into the bill of the three downstate licenses that need to be considered by the Community Advisory (Committee), the local input on this and the siting board. Factors include impact on the surrounding neighborhood, the workforce, who you are hiring, are you going to include MWBE revenue projections, is there a certain amount of housing component, infrastructure component. These factors are looking at the site as pertaining to their geographic surrounding. I believe there is a point system. And what you try to do is eliminate any type of ambiguity. Take away any kind of personal decisions. We did it with mobile sports betting: You can point to something, hey this is how you scored. We won’t know who the operators are until you start the application process. Are you talking about seven applicants, 15, who is going to submit, what sites are going to be in play, what issues are in play to that unique site, are there land use issues? We have no idea until you start the application. That’s why it’s so critical to at least start.

Does the process include enough local input – or too much?

I lived through this with Resorts World. I can tell you people are fearful of the unknown. Resorts World nestled in a residential area. I heard it all, prostitution, traffic and flooding. None of that has occurred with that in the past 11 years it (has been) open. But the fears are there and there were valid concerns

A family that lived across the street in Ozone Park and said we’re moving. I said let’s see and wait until the casino is open. That family is still there. Many of the concerns they had we addressed.

I tell colleagues most issues in their districts can be addressed. When you look at the opportunity for creating jobs, revenue and getting nonprofit groups in the area funded by the casino these benefits outweigh any kind of negatives.

The common wisdom has long been that two existing racinos, Empire City Casino by MGM Resorts and Resorts World New York in Queens, are favorites to win full-fledged casino licenses. Do you think that’s the case?

It’s the most popular hypothetical I hear from many. But if one of the issues is on the impacts of a casino in a given area, or community, one of the things that Resorts World has done is proven they will be a good neighbor. During Hurricane Sandy, the pandemic and other events, they’ve been a great partner. That’s because I’ve witnessed that. They have parades and other events that happen annually that Resorts World is a part of. I do a job fair there. They are an integral partner of community events. That’s why again, I hear very little complaints about them in the neighborhood. If one of the issues is how a casino integrates into a neighborhood, in my opinion Resorts World checks that box. They’re one of the most successful gaming sites in the country and they’re a racino. There’s very little guesswork here with a proven product. There’s a process, nobody is given a license. But everybody is given a fair shot.

Resorts World is right next to your district. Are you a supporter of its bid? What kind of local support (or opposition) is this bid eliciting so far? 

I am hopeful. I have no say in the matter, they’re not in my district. My constituents are employed there. One of the parts of my job is to find credible work for my constituents. I would love for Resorts World to expand. On that basis alone, I would hope they succeed. 

I also have JFK Airport, hospitals and this casino site is a great employer in a vast amount of jobs. You want something as successful as that to expand.

How confident are you in the process that’s been set up this time around?

Up to this point (in) the application process, I’m not happy with the application process. I think it has taken way too long. Once it starts I hope to have a positive opinion, that it moves efficiently.

The upstate casinos authorized in the previous licensing cycle have failed to live up to economic projections? Why?

Projections are always tricky. I don’t get involved in them for how much money New York would make from mobile sports betting. Those are tricky to make. Those casinos some say they’re not as successful as the state thought they might be, but if you go to Schenectady and see the revitalization for that town which is parallel to the opening of the Rivers Casino up there. The other three have created thousands of union jobs, to allow someone locally to provide for themselves and their family is a good thing. I’m wary of projections.

What are the revenue expectations for three downstate casinos? Is there any official state projection? Do you have any concern that projected economic impact will fall short this time around?

No, I couldn’t see an accurate statement come out. We have no idea where they will land before the application process starts. I would be very wary of projections. If a casino does land in Manhattan, (New) Jersey gets very nervous about that. They see themselves losing revenue if there’s a Manhattan casino and they could change their constitution to ensure casinos move out of Atlantic City and come further north.

I look forward to seeing the application process. You don’t get the opportunity to create this kind of potential for great jobs, addiction programs and the revenue aspect. A large portion for this goes to the MTA. The three licensees go to the MTA and the MTA gets 80% of the tax revenue. This is why I thought it was so important to push this process along. 

It’s money for the MTA, if you want to use it for operating, capital, that’s a minor accounting shift. This is significant sustainable revenue for the MTA. How you want to use it, that we can determine. That’s why it’s so important to have this process get started.

What’s the status of legislation that would legalize online casino gambling in New York? Any chances of passing?

We’re surrounded in New York. We know New Yorkers (can go) to New Jersey or Connecticut and get their online gaming. Worse than that is the illegal gaming – we can’t help a New Yorker with a gaming addiction if they’re playing in the shadows. There’s also sweepstakes casinos that look like Candy Crush. They’re pleasing to a minor, but they’re not regulated.

We need to regulate iGaming in New York. If you want to help someone with an addiction or on their way, you regulate it and give them a safer way to use it.

This is a new product, it’s not earmarked toward education or anything. Do you want to use these billions of dollars from iGaming for transportation, health care or education? Whatever you want to use it for, you can.

We do have a major obstacle in the Hotel Trades Council. My constituents are members. I do nothing but want to grow their membership. But they believe that iGaming would cannibalize brick-and-mortar retail. Right now, the governor will say we don’t do iGaming because the union doesn’t want to. I am hopeful instead of losing revenue to New Jersey, Pennsylvania and Connecticut and the illegal market and not being able to fully help a person with an addiction, hopefully the governor will call union and legislators to the table and let’s figure this out.

We have an opportunity to be a model for every other state for iGaming. We have to be creative in legislative language, but it has to be an initiative. It’s a partnership. I look to the governor for leadership because right now the union won’t talk with me.

Do you expect sports betting companies to continue to make a push in Albany this year to lower the 51% tax rate on gambling revenue? If so, do you see the Legislature reconsidering the existing tax structure this year?

I don’t. As of now, no I don’t see it. Anything can happen during the budget process. The talk of the 51% tax rate evaporated when the thought of iGaming came about with New York. The iGaming numbers in New York will totally eclipse mobile sports betting. In my opinion, it became a nonargument because New York should do iGaming.

Somebody has to make the argument that by reducing the 51% and adding more operators that we’ll remain the No. 1 product in the country in terms of handle or revenue. Why would New York reduce that if it means a reduction of revenue?

New York set a new record in 2024 for online betting after betters wagered more than $22.6 billion. Will there be continued growth in 2025?

Yes, and here’s why. We’ve shown the appetite for New Yorkers to do mobile sports betting and I was amazed. They’re already doing it in New Jersey and New Yorkers are savvy. We told New Yorkers to stop going to New Jersey, come to New York, stay in New York and we had to provide them a better product so they wouldn’t go back to New Jersey.

We can only maintain that top-shelf product if we look at ways to improve mobile sports betting. As a legislator I cannot and will not say: We did mobile sports betting, it was successful, we’re done. We have to look at how do we improve it? Do we look at NASCAR, look at mobile sports betting and horse racing. That’s something I will have a discussion with my committee team about. As with anything, it takes a cooperative effort with (the) Gaming Commission and governor’s office.

Any other key legislation you expect to come through your committee this year? 

Here’s one that links both. The New York Council on Problem Gaming gives me a lot of input on what we need to do to address gaming addiction. In the initial legislation for mobile sports betting, every year $6 million for problem gaming was guaranteed. We were one of the first in the country to do that. A couple years later, they said, hey that $6 million stays the same every year.

We have legislation saying it’s either $6 million or 1% of the gross revenue of mobile sports betting, whichever is greater. That could be an increase of several million dollars. It could prove to be beneficial to (improve) access to problem gaming hotlines.

We’re looking to expand access to insurance, problem gaming services. More insurance coverage, so someone doesn’t say I can’t afford the treatment. Hopefully this helps promote the services we have.