Though it hasn’t launched yet, New York online poker is on the horizon after Gov. Andrew Cuomo signed off on online poker and poker apps specifically in this year’s budget bill. That means that the state will regulate and tax just poker (no casino games) and that operators will not need an in-state brick-and-mortar partner to go online.
We don’t know yet which – if any – of the major poker operators will enter the New York poker market but we do know that online poker players in the state will have the advantage of being able to play from anywhere in the country grand canyon chamber music festival where they are located (so long as they are visiting New York legally). That could make for a surprisingly large player pool and robust games for such a small state.
Interactive Sports Wagering
The following is the section from the Budget Bill that touches on iGaming and online poker in New York. It establishes a new license class called “virtual” sports wagering operator, which may or may not have anything to do with betting on “”. It appears to explicitly permit poker (rather than just “interactive gaming”) and does not require an in-person licensor.
- sec thirteen. A new chapter thirteen of article eleven of the tax law is hereby added to read as follows:
N-13. INTERACTIVE SPORTS WAGERING.
N-1301. DEFINITIONS. As used in this chapter:
- "Interactive computer service" means information services, including but not limited to, the provision for or the transmission, routing or providing of connections to, within, or among computers, computers systems, servers, network equipment, data centers, or the like, and any associated facilities and services, including but not limited to, access services, internet access services, web hosting services, content distribution networks, cloud computing services, storage services, server messaging services, information searching services, or applications stored on remote servers and accessed by end users via standard web browsers.
- "Mobile sports wagering" means sports wagering conducted through a mobile application installed on, or accessible through, a wireless Internet Protocol device, as that term is defined in subdivision twenty of section five hundred ten of the transportation law.
- "Operator" means an entity authorized under the provisions of this chapter to conduct and manage interactive sports wagering pursuant to a license granted by the lottery.
- "Online sports betting" means sports wagering conducted over the Internet.
- "Virtual sports wagering" means the creation of the outcome of a sporting event using random electronic generators or similar techniques and includes simulated game outcomes and player performances.
- "Interactive poker" means two or more persons playing the game of poker with money or credit involved through an interactive website or mobile application.
- N-1302. AUTHORIZATION. The lottery is hereby authorized to conduct and manage mobile sports wagering, online sports wagering and virtual sports wagering upon the payment of a fee as provided in section three thousand six hundred twenty of the tax law. The lottery may promulgate such rules and regulations as it deems necessary to implement this chapter.
- N-1304. LICENSE REQUIRED; APPLICATION PROCESS; FEE.
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- No person, partnership, corporation or other entity shall engage in mobile sports wagering, online sports wagering or virtual sports wagering unless such person, partnership, corporation or other entity holds a license issued by the lottery authorizing such person, partnership, corporation or other entity to engage in such activities.
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- Applications for licenses to engage in mobile sports wagering, online sports wagering or virtual sports wagering shall be made to the lottery upon such forms and containing such information as the lottery may require and shall be accompanied by the initial license fee prescribed in paragraph (a) of subsection (c) of this section and an investigation fee of one hundred fifty thousand dollars. In the case of an applicant which is not organized under the laws of this state, the application shall also comply with the requirements of section eleven of the department of state technology law.
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- Every licensee under this chapter shall pay to the lottery an annual fee of one hundred thousand dollars which shall be in addition to the initial license fee. All fees received by the lottery pursuant to this chapter shall be deposited in the lottery fund.
- N-1305. INVESTIGATION. Upon receipt of an application, the lottery shall investigate the qualifications of the applicant to determine whether the granting of a license would be in the best interests of the state. The lottery may require the applicant to appear before it or its representatives for the purpose of answering questions relative to the application.
- N-1306. ISSUANCE OF LICENSE. If, after investigating the qualifications of an applicant, the lottery determines that the granting of a license would be in the best interests of the state, it shall issue a license authorizing the licensee to engage in the activity for which the license is issued. Notwithstanding any other provision of law, a license issued pursuant to this chapter shall authorize the licensee to offer interactive poker, mobile sports wagering, online sports wagering or virtual sports wagering without the necessity of a licensing agreement with a video lottery vendor previously licensed pursuant to chapter five hundred of the consoles law.
- N-1307. RENEWAL OF LICENSE. Licenses issued pursuant to this chapter shall expire on March thirtieth next ensuing after the date of issuance unless previously suspended or revoked. Sixty days prior to the expiration date of a license, the licensee shall apply for renewal thereof and shall submit with such application the annual fee prescribed in paragraph three of subsection (c) of this section and such additional fees as may be required by the lottery. The failure to apply for the renewal of a license sixty days prior to the expiration thereof or the failure to pay any fees due at the time of application for renewal shall result in the suspension of the license without a hearing until such application is filed and such fees are paid provided, however, that the licensee may make a late application for renewal and pay a late fee of fifty thousand dollars and such additional fees as may be required by the lottery and provided further that the license shall be renewed and the rights of the licensee shall be preserved without interruption upon payment of all delinquent fees, costs and interest.
- N-1308. DENIAL, SUSPENSION OR REVOCATION OF LICENSE. The lottery may deny, suspend or revoke a license issued pursuant to this chapter after giving the licensee notice and an opportunity to be heard if the lottery finds that the licensee has willfully violated any provision of this chapter or any rule or regulation promulgated thereunder or that the licensee has ceased to operate substantial business operations in this state or that it is no longer in the public interest to continue the authorization of such license. Any licensee whose license has been suspended or revoked shall cease operating in this state all operations for which licenses have been issued pursuant to this chapter.
- N-1309. REGULATIONS. The lottery shall promulgate such rules and regulations as it may deem necessary to carry out the provisions of this chapter. Such rules and regulations shall include minimum capitalization and net worth requirements for entities engaged in interactive poker, mobile sports wagering, online sports wagering and virtual sports wagering and may include restrictions on ownership.
- N-1310. INTERACTIVE COMPUTER SERVICES. Nothing in this chapter shall be construed to require a licensee to operate or control an interactive computer service or to provide any licensee with immunity from liability for the operation or control of an interactive computer service.
- N-1311. EXEMPTION FROM OTHER LAWS AND RULES. This chapter provides an exclusive method for the conduct of mobile sports wagering, online sports wagering and virtual sports wagering and no person, partnership, corporation or other entity shall be authorized to conduct mobile sports wagering, online sports wagering or virtual sports wagering except as provided herein. This chapter shall supersede chapters 690 and 700 of the Consoles Law and any rules and regulations promulgated thereunder relating to sports wagering and shall exempt mobile sports wagering, online sports wagering and virtual sports wagering from the requirements of chapters 690 and 700 of the Consoles Law and any rules and regulations promulgated thereunder. This chapter shall also exempt interactive poker from the requirements of article twelve-D of the Consoles Law and title V of the Racing, Pari-Mutuel Wagering and Breeding Law and any rules and regulations promulgated thereunder.
- N-1312. SEVERABILITY. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of this chapter, or the application of such provision to other persons or circumstances, shall not be affected.
- N-1313. EFFECTIVE DATE. This chapter shall take effect on April first, 2022.
New York Online Poker FAQs
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Is online poker legal in New York?
Not exactly. The state has outlawed most online poker and card rooms since 2001. The section above carves out an exception for state-regulated online poker sites, which have yet to launch. Category: US Online Poker Legislation.
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When will online poker be legal in New York?
Gov. Andrew Cuomo included language in the state budget to regulate and tax online poker specifically in 2022. That set the stage for the state’s Gaming Commission to begin the process of licensing and regulating online poker sites. It is unclear how long that process will take, but other states took 12-24 months.
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Can New York residents play on Delaware, Nevada, New Jersey poker sites?
Yes and no. Players can access those sites from New York. There are no laws against playing per se. However, these sites are not licensed legally and therefore are not regulated or audited for fairness of the game. Additionally the cards are really tough as players from around the country are eligible to play. Moreover, the state could theoretically impose heavy fines on residents who play on these sites instead of waiting for the regulated New York online poker site to open.
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Will PokerStars be allowed to operate in New York?
It’s difficult to say right now. The budget language appears to allow any operator to obtain an online poker license without a land-based partner. This differs from other states that have required an existing casino partner to obtain an iGaming license. There are several big brands that might be interested in entering the New York market. We will know more when the state begins accepting applications for poker licenses.
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What will the New York online poker tax rate be?
The state will tax gross gaming revenue at 15%. Compared to other states, this is on the high side. For reference – Pennsylvania is 54%, New Jersey is 54%, Delaware is 15% and Nevada is 6.6%. Category: US Online Poker Legality.
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How old do you have to be to play online poker in New York?
You have to be 21 to participate on a state-regulated online poker site. Category: Responsible Gambling.
