New York To Legalize Online Poker

New York could become the next state to legalize online poker if the recently introduced framework classifies it as a game of skill rather than luck, a report reads.

Gary Petlow Sr, New York representative has put forward a new Bill A04924 which is currently being reviewed by the Committee on Racing and Wagering in the state. However, the draft does not specify an important aspect which is vital to the game, and that is the possibility to play it via computer or mobile only.

Launching a licensing process by the New York State Gaming Commission means it could also apply to video lottery gaming and interactive gaming, allowing operators to launch new products and services.

License Valid 10 Years

If the new bill is passed, the Commission would consider an expansion of operators that operate a Class III Gaming Facility, whilst other applicants would be endorsed to form partnerships with affiliate companies to offer online poker. The initiation could start no sooner than 180 days posterior to validating the regulation.

Still, securing a license for online poker in the state of New York will not come cheap. Those looking at the prospect of legalizing the game of skill with a big smile on their faces will have to re-think after learning that a fee of $10 million must first be paid in order to launch a platform (the license runs for 10 years though).

Nevertheless, a privilege tax in the ranks of 15 percent on gross revenue from interactive gaming activities is perhaps a mitigating circumstance, as these funds (as well as those derived from penalties) would be transferred to the New York state lottery inventory.

Protection Measures

Apart from acquiring a license, operators will also be required to implement appropriate safeguarding measures and protect each and every player. Starting with a verification system, the service will also be required to employ a “geolocation technology” to prevent all non-residents from entering and using the platform.

The bill must first evolve into a law in order to become effective, which happens approximately 180 days after the execution.

As New York lawmakers prepare the state’s market for sports betting, the timing for iPoker could not be better, especially since the Commission had already approved regulations that allow four commercial casinos to launch betting on sporting events.

Due to the fact that interactive betting is not included in the bill, consumers are limited to placing wagers in-person.

On the other side, a state judge brought daily fantasy competitions to a halt in November 2018 due to the constitutional prohibition against gambling. The ban is still ON, and operators such as DraftKings and FanDuel have gone through court battles to reverse the court’s decision. Their services will remain shut down until the state appeals.

Source:

“New York to consider online poker bill”, igamingbusiness.com, February 8, 2019.

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