NY Legislation Would Launch Online Poker, Allow Live Poker in Bars

One bill introduced in January calls for the New York State Gaming Commission (NYSGC) to issue 11 licenses to online poker operators.
NY Legislation Would Launch Online Poker, Allow Live Poker in Bars
By
February 01, 2023

Lawmakers in New York introduced a pair of bills in January to expand gaming in the Empire State, both of which involve New York online poker.

The first bill, A1380, was introduced by Assemblyman J. Gary Pretlow (D-Mount Vernon). It calls for legalizing online poker in New York and authorizing the New York State Gaming Commission (NYSGC) to issue 11 licenses to online poker operators.

Perhaps more importantly, A1380 also calls for certain interactive poker games to be considered games of skill rather than luck.

Meanwhile, Assemblyman David Weprin (D-Fresh Meadows) introduced a second bill, A1580, which would let bars and taverns allow their customers to participate in certain recreational contests — including live poker.

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Online Poker Would Be Taxed at 15%

A1380 calls for amending the state’s Racing, Pari-Mutuel Wagering, and Breeding Law, partly by adding Omaha Hold 'em and Texas Hold 'em to the list of authorized games in the state. It would also allow the NYSGC to add “any other poker game that the commission determines is the material equivalent of either of those, whether in a cash game or tournament.”

The bill argues that poker should be reclassified as a game of skill. It said state courts in New York had applied a more rigorous test to identify contests of chance than most other US states and that the courts “found that where a contest pits the skill levels of the players against each other, those games are games of skill and not games of chance.

“Furthermore, the courts have not limited the legislature’s ability to determine that certain forms of poker should fall outside the general definition of gambling since those games are games of skill.”

Online poker — which, according to A1380, the legislature finds “a major form of entertainment for many consumers” — would be taxed at a rate of 15% under Pretlow’s proposal. Entities with either a Class III casino license or authorized to operate video lottery gaming would be eligible for an interactive gaming license.

The bill also calls for the NYSGC to promulgate rules governing the operation of online poker within 180 days of the bill becoming law. The regulator would be authorized to issue the 11 licenses after that.

New York will be a juggernaut for online poker if it becomes legal. With 19.7 million residents, the Empire State is much bigger than states currently with legal online poker. Pennsylvania and Michigan come closest, with populations of 13 million and 10 million, respectively.

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Bill Would Allow Live Poker at Bars

Weprin’s bill is much shorter — A1580 calls for changing the state’s beverage control law.

Specifically, the bill would insert a new section into the beverage control law to allow recreational contests involving skill in establishments that are licensed to sell alcoholic beverages. Live poker is considered a recreational contest.

The state’s taverns and bars “may allow players to engage in recreational contests among themselves involving chance so long as skill is a factor at such establishments,” the bill states. “Wagering amongst participants is permissible.”

Live poker is currently only legal at the state’s land-based casinos.

Both bills were introduced on January 17 and referred to the Assembly Standing Committee on Racing and Wagering, which held a public hearing in Albany on Tuesday to discuss the first full year of sports betting in New York.

A1380 and A1580 would need to make it out of committee and pass a floor vote in the state Assembly before moving on to the Senate. The bills would then need to be signed into law by Democratic Governor Kathy Hochul.

The legislature adjourns on June 8.

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