Just when it seemed California and Pennsylvania would be the only states to float a serious charge towards iPoker regulation in 2016, NY has surprised everyone and got a bill out of committee.
On Tuesday, S5302B successfully emerged from the Senate Committee on Racing, Gaming and Wagering via a 9-0 vote.
This is the first time in NY history that an online poker bill has emerged from committee and the bill can now begin what once seemed an unlikely journey towards becoming law.
Bill is Senate Version of Pretlow Bill
In case you haven’t heard of S5302B it's essentially the same bill as AB9049 filed by Assemblyman Gary Pretlow. The Senate bill is sponsored by Senator John Bonacic, the man that has been championing the cause of iPoker for a couple of years now.
This bill would make it relatively easy for a company looking to provide online poker services in the state.
First, the licensing fee is set at a one-time charge of $2 million. Taxes are set at just 15% of gross revenue.
This lower tax rate will attract multiple companies looking to do business in the U.S. but not wanting to pay out a major sum of their income to the state government.
Next, the bill does not presently include a bad actor clause. This means that PokerStars will be permitted to apply for a license once iPoker is regulated.
After the bill passed committee on Tuesday, Bonacic revealed plans to add an amendment that will require iPoker companies to partner with NY casinos or racinos.
This has been the standard practice in both New Jersey and Nevada. Delaware iPoker is run by the state lottery.
Will Bonacic Become His Own Stumbling Block?
Rumors began circulating shortly after S5302B passed committee that Sen. Bonacic may actually seek to slow down the implementation of iPoker until the three new casinos are operational in upstate New York.
Last year NY regulators approved three new casino licenses and construction is already underway on at least one property.
The first new casino is expected to open sometime in 2017 with the other two expected to open sometime between 2018 and 2020.
Bonacic’s move to slow down implementation makes sense in a way because it will give more options for iPoker companies and allow sites to all launch at the same time.
Some groups, such as the Poker Player’s Alliance, have urged Bonacic to reconsider slowing down the process and proceed with regulating iPoker in order to protect citizen rights.
S5302B will now move on to the Senate Finance Committee. If it passes there, it will move on to a full floor vote.
Bonacic pledges that he will work with both houses to push through iPoker regulation. What timeline he has in mind is anyone’s guess.