According to the New York Daily News’ Kenneth Lovett, Democrats in the New York Legislature are advising their brethren that represent the state in Congress to stand against the proposed bill that would federally outlaw online gaming and poker in the U. S.
Five Democrats – New York State Senators Diane Savino, Tony Avella, David Carlucci, David Valesky and Jeffrey Klein – called the Senate Independent Democratic Conference signed a letter to the 29 people who represent the state in Washington, D. C., stating that any actions taken in the nation’s capital regarding online gaming and poker world have severe effects on the Empire State. The letter states that the proposed legislation currently in the U. S. House of Representatives, Utah Representative Jason Chaffetz’ Restoration of America’s Wire Act (RAWA) or HR 707, would “trample on the rights of states” if it were to pass through Congress.
As it is right now, New York offers several options when it comes to online gaming, just not the type that most would associate with casinos. The New York Lottery allows citizens of the state to play via a subscription service that allows the player to pick from three games: Lotto, Mega Millions and Cash for Life. The New York Racing Association has for years offered wagering on horse racing through its website. While the NYRA’s activities might be exempted by a carve-out, the actions of the New York Lottery would be shut down by the potential passage of RAWA unless a carve-out for states operating lottery sales online were exempted.
What makes the letter from the New York politicians interesting is that, as of now, the five State Senators who penned it weren’t taking any sides on the issue. Calling the determination of what gaming to offer inside its borders “a right which New York and every other state has historically exercised,” the five Senators do not stake any ground on their opinions of whether online gaming and/or poker should be allowed inside the state’s confines. By encouraging the Congressional representation to stand against RAWA, the State Senators are looking to ensure that they make the decision rather than the federal government.
Hot on the heels of the letter from the State Senators to their Washington cohorts, one of their fellow officials in the New York Senate went about putting into action new legislation to allow for online poker. State Senator John Bonacic, who also introduced an online poker bill in 2014 only to see it die with the close of the New York Legislature in December, reintroduce that legislation for 2015. Senate Bill 5302 (S 5302) would allow for an intra-state online poker network that would be overseen by the New York State Gaming Commission.
There are parts of the bill that are quite familiar to those that remember Bonacic’s efforts in 2014. The bill still offers licenses to operators for $10 million (and for 10 years) with a cap on the number of operators at 10. The tax rate for the sites would be 15% and Omaha and Texas Hold’em would be allowed, along with other disciplines of poker that “are the equivalent” of either of those two games. It would also criminalize online gaming on a non-New York licensed site.
The big change, however, is in some verbiage that is in the bill. The 2014 bill contained a ‘bad actor’ clause that restricted any operation that offered online gaming to U. S. customers after 2006 (the active date of the Unlawful Internet Gaming Enforcement Act, or UIGEA) from being licensed in New York. The 2015 version of Bonacic’s bill does not have that language in the bill, something that has been a consistent thorn in the side of legislative efforts in other states.
Unfortunately, much like 2014, Bonacic’s bill is but a mere placeholder for potential regulation of online gaming in New York. Bonacic’s bill is not being considered for any action as the state observes what occurs with three ‘brick and mortar’ casinos in its Upstate region. Until the Legislature – and New York Governor Andrew Cuomo (who hasn’t taken a position regarding online gaming and poker) – see the results of the new casinos, many believe that no action will be taken regarding online gaming and poker, for good or for bad.
