Anyone with high hopes of online poker becoming legalized in New York in the near future will have to re-evaluate their position after Wednesday’s iGaming hearing.
The state Senate’s Gaming, Racing & Wagering Committee held a hearing on the matter and while there is support for the measure, there appears to be a lack of interest from the legislature.
Legislators Largely Ditched Wednesday Hearing
When Wednesday’s hearing began only three NY lawmakers were in attendance and that included S 5302 sponsor Senator John Bonacic. Unfortunately, two of those members skipped out on the hearing before the third speaker gave testimony.
Bonacic claimed that the departure of the lawmakers was due to prior commitments but the remainder of the hearing was essentially iPoker supporters and stakeholders preaching to the choir.
The hearing was opened by a speech from Poker Player Alliance executive director John Pappas. He gave his typical dissertation on how regulation will protect players from unscrupulous operators.
Pappas drove his point home by pointing to the recent Lock Poker scandal and how players across the U.S. lost millions when the site went under.
Racinos Urge Caution But Recognize Need to Reach Younger Players
NY Gaming Association President James Featherstone gave testimony urging caution in the regulation process in order to protect the interest of the racinos in the state. He even recommended possibly delaying any regulation efforts until three planned resort casinos are opened in the coming years.
While Featherstone urged caution, Spectrum Gaming Group’s Michael Pollack pointed out that the racinos were facing the problems of an aging customer base and that online gambling would allow them to reach out to younger customers.
Pollack pointed out that many online gamblers in New Jersey have never entered a casino, showing that online poker and iGaming could tap into a whole new customer base.
Casino Operators Urge Expansion to Online Gambling to Avoid Becoming Obsolete
Multiple iGaming operators and casino representatives testified during Wednesday’s hearing. MGM Resorts general counsel John McManus pointed out that both casinos and racinos should embrace iGaming expansion or risk becoming obsolete.
Caesars Entertainment VP of government relations David Satz claimed that New York could see between $256 and $425 million in tax revenue during the first 10 years of regulation provided a reasonable tax rate was instituted.
Borgata president Tom Ballance gave a strong endorsement for iGaming. He admitted that the Borgata was initially reluctant to expand to iGaming but they figured that if they did not, their competition would. Borgata has enjoyed a year of profitability in New Jersey iGaming as a result.
State Legislators Sending Wrong Message
While most of those giving testimony on Wednesday were in support or at least receptive to iGaming regulation, the fact that only Senator Bonacic remained in attendance during the entire hearing sends the wrong message to citizens and the casino industry as a whole.
With their actions lawmakers have shown that iGaming regulation is a low priority. Part of their apathy may be due to the fact that the live casino industry is currently expanding and they may be taking a cautious approach.
Wednesday’s hearing started as a positive step forward for New York but one has to wonder whether if legislators are interested in continuing the journey to legal online poker sites or merely content to sit back and watch.