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New York Online Poker Bill Introduced

Proposal Follows Last Year's Unsuccessful Attempt

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Last week, an online poker bill was introduced in New York, which follows an unsuccessful online poker push in the state last year. A bill at some point this year was expected.

The legislation, authored by Sen. John Bonacic, a Republican, calls for a cap of 10 online poker operators. Operators would be taxed at a 15-percent rate.

The measure makes specific reference to poker as a game of skill. “Poker in many instances has been defined as a game of skill and a New York federal court in U.S. v. DiCristina […] assessed that under federal law poker was predominantly a game of skill,” the bill reads.

The game “involve[s] player strategy and decision-making and which pit the skill levels of the players against each other,” the bill continues. “As games of skill, these forms of poker do not fall under the definition of gambling as prohibited by the penal law.”

In March of 2014, an online poker bill was introduced into the state legislature, but it didn’t move anywhere. Weeks later, Bonacic, chair of the Senate Committee on Racing, Wagering and Gaming, said: “I don’t intend to push this this year. But we need to start a discussion.” In 2012, the New York Senate made headlines by saying it supported online poker during budget talks.

According to an October report from The New York Times, MGM Resorts has been lobbying in Albany to get online poker approved. An analysis commissioned by MGM estimated that New York residents spend as much as $110 million on offshore online poker sites.

The study also estimated that New York could see $50 million to $80 million in annual taxes by making New York-licensed intrastate online poker sites available.

The proposed bill, however, would allow for New York to possibly enter into deals with other jurisdictions to share liquidity. New York is home to more than 19.6 million people.

The state recently gave the OK to four commercial brick-and-mortar casinos.

Just three states—Nevada, New Jersey and Delaware—have regulated online poker. Pennsylvania and California are two other states considering the industry.