New York Senate passes online poker bill
S 3898 faces race to be passed by House before June 22 with support in the lower chamber still unknown
The New York Senate has passed an online poker bill for the second year in a row, including a new bad actor clause added at the 11th hour.
Senator John Bonacic’s bill was passed 54 votes to eight on Tuesday night, but faces a tight window to get passed by the House, with only four days left in the legislative session.
The bill would tax online poker operators at 15% of GGR with a $10m upfront licensing fee that will offset future taxes.
The bill permits interstate liquidity pacts and allows the New York State Gaming Commission to award up to 11 online poker licenses.
Crucially, bad actor language was added to the bill at the last minute, stating that regulators should consider whether firms took wagers after UIGEA in 2006.
Importantly, the bill says regulators should consider those actions when assessing licensing suitability, rather than outright banning these firms from the market.
PokerStars has long called for regulators to be allowed to decide on suitability in California.
However Simon French, an analyst at Cenkos Securities, said the clause means 888 and GVC Holdings would be “particularly well placed to benefit from the opening up of the market”.
The support of key members of the House, including J. Gary Pretlow, who chairs the Assembly Racing, Gaming and Wagering Committee, is still largely unknown, with Pretlow recently raising concerns about making it too easy to gamble in New York.