New York may be average in terms of its size, ranked the 27th largest state in the US, but if any territory knows how to pack in the populous, it’s this one. The Empire State is practically overflowing with the 3rd highest population of 19,651,127 (est. 2013). The economy is built upon an eclectic variety of industries that includes everything from cattle and apples to electronics and printing/publishing. Tourism plays a huge role in the state’s revenue and includes a wide range of casino gambling, although much of it is the untaxed tribal variety.
Though the state has toyed with the idea of adding online poker to the list of authorized gaming, New York has not elected to regulate the activity just yet. Without regulations in place, it’s easy to assume that online poker must be illegal by default, but that’s not always the case with US states. We will examine the laws and legalities of gambling in New York to determine if online poker is legal, illegal or somewhere in the middle.
We will examine the laws and legalities of gambling in New York to determine if online poker is legal, illegal or somewhere in the middle. Land-based Gambling in New York. Gambling in all forms (except lotteries) was prohibited in New York in 1821, followed by a lottery ban in 1864. The current state of online poker in New York is that it’s actually considered to be quite the illegal operation. This falls in line with the legality of online casino gaming, which is also considered not to be a legal activity according to the laws of the State of New York and wording of same (Article 225 of the New York Penal Law. While live poker has traditionally been restricted to backroom clubs in the heart of New York City, moves are afoot to regulate online poker for NY residents AND introduce major new land-based casinos in the state. Soon, you'll be able to play at legal poker sites in New York that are regulated by the state.
Land-based Gambling in New York
Gambling in all forms (except lotteries) was prohibited in New York in 1821, followed by a lottery ban in 1864. I wasn’t until 1939 that pari-mutuel betting on horse races became a legal activity, and charitable bingo games in 1957. The New York State Lottery was re-enacted in 1968, and a limited number of chance-based gambling games were permitted for charitable purposes only in 1975. As for traditional casino gambling, that didn’t arrive until 1993, 5 years after the IGRA, when tribal gambling became legal on a Class III level (games played against the ‘house’; no poker). Along the way, three tribes were granted Class II gaming licenses from the NIGC to offer bingo and poker games, and horse tracks were eventually permitted to operate as racinos, but were restricted to Class III gaming.
In 2012, Superstorm Sandy devastated the northeast, causing $42 billion worth of damage in New York alone. The expansion of casino gambling became a huge topic, hoped to serve as a means of recovering some of those outrageous expenditures. The next year, a bill passed to allow up to 7, full-fledged commercial casinos in up-state New York, expected to open as early as 2016.
Due to the rapid expansion of gambling approved by politicians and voters alike, it’s certainly not a far stretch to think that online poker will be added to the menu. However, officials have clearly stated that they wish to focus on the expansion of the state’s land-based gambling industry before paving anymore new paths.
Deciphering the Laws of New York as they relate to Online Poker
The gambling laws of New York do reference the internet, but only in the authorization of online pari-mutuel wagering. Since online poker is not yet a regulated activity, we will next observe the Penal Code of New York as it may relate to internet poker games.
| Section | Text | Meaning (in re online poker) |
| § 225.000 Gambling offenses; definitions of terms | 1. “Contest of chance” means any contest, game, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein. | Poker is contest of chance in New York. |
| 2. “Gambling.” A person engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance…upon an agreement or understanding that he will receive something of value in the event of a certain outcome. | Playing poker for real money is defined as gambling in New York. | |
| 3. “Player” means a person who engages in any form of gambling solely as a contestant or bettor, without receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings… A person who gambles at a social game of chance on equal terms with the other participants therein does not otherwise render material assistance to the establishment… | A poker player who stands to gain nothing but personal gambling winnings is a player; (as opposed to advancing gambling activity or profiting from gambling activity). | |
| 7. “Gambling device” means any device, machine, paraphernalia or equipment which is used or usable in the playing phases of any gambling activity, whether such activity consists of gambling between persons or gambling by a person involving the playing of a machine | A computer or mobile device can be used in the playing phases of any gambling activity. If one such device is used to play real money online poker, it could potentially be defined as a gambling device. | |
| 12. “Unlawful” means not specifically authorized by law. | Any gambling activity that is not expressly authorized in New York is illegal by default. | |
| § 225.30 Possession of a gambling device. | a. A person is guilty of possession of a gambling device when, with knowledge of the character thereof, he or she manufactures, sells, transports, places or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of: 1. A slot machine… 2. Any other gambling device, believing that the same is to be used in the advancement of unlawful gambling activity… Possession of a gambling device is a class A misdemeanor. | Possessing a gambling device and knowing it is to be used for conducting illegal gambling is punishable by up to 1 year in jail and/or up to $1,000 fine. |
Is Online Poker Illegal in New York?
Yes. The definitions of contest of chance and gambling undeniably include the game of poker, and any gambling activity that is not specifically authorized by state law is consequentially deemed unlawful. Therefore, without a regulated online poker market in New York, one must assume that it is illegal to play poker online for real money. It should be noted, however, that there is no punishment imposed for players who wager on illegal gambling activities. The only possible penalty for an online poker player would be the possession of a gambling device, which does carry a fairly hefty punishment.
Is New York working to legalize Online Poker?
Yes. After passing a bill to expand the land-based casino gambling industry in 2013, New York legislators went the extra step to introduce not one, but two online poker bills, A 9509 and S 6913, in March of 2014. The first was stricken almost immediately, but the second was amended and referred to the Racing, Gaming and Wagering committee. Unfortunately, it’s laid dormant ever since. New York legislators made it quite clear that 2014 was not the time for a regulated online poker market. Officials would rather focus on the current casino expansions in up-state New York for the time being.
On the whole, yes, New York is expected to legalize online poker, but it could be 2016 before the issue resurfaces as a serious topic.
Online Poker Players from New York
New York is brimming with grinders of the virtual felt, and for the most part, they aren’t too shy about their online poker prowess. John “elitewrestla” / “fml4dawin” Russo, Richard “purefocussss” / “anenchephalous” Block, Charles “ottoclem” Geier, James “foldbos” Gettinger, Chris “kekzee” Delarato, Jesse “Jhateeee” Haight, Connie “Garnet78” Rinaldi, Jake “jmasterrich” / “Brooklynblunts” Richards, the list goes on and on…
Land-Based Card Rooms in New York
There are currently 18 casinos in New York, but only 4 of them boast a live poker room. 10 of them fall into the category of Native American casinos, while the other 8 are state-regulated racinos (horse tracks supplemented with casino style gambling). The list below is ordered alphabetically by name, including location and the availability of a poker room.
Akwesasne Mohawk Casino
Location: Hogansburg, NY
Poker Room: No
Batavia Downs Casino
Location: Batavia, NY
Poker Room: No
Empire City Casino at Yonkers Raceway
Location: Yonkers, NY
Poker Room: No
The Fairgrounds Gaming
Location: Hamburg, NY
Poker Room: No
Finger Lakes Gaming and Race Track
Location: Farmington, NY
Poker Room: No
Lakeside Entertainment
Location: Union Springs, NY
Poker Room: No
Mohawk Bingo Palace and Casino
Location: Akwesasne, NY
Poker Room: Yes
Monticello Gaming & Raceway
Location: Monticello, NY
Poker Room: No
Resorts World Casino New York
Location: Ozone Park, NY
Poker Room: No
Saratoga Casino and Raceway
Location: Saratoga Springs, NY
Poker Room: No
Seneca Allegany Casino
Location: Salamanca, NY
Poker Room: No
Seneca Buffalo Creek Casino
Location: Buffalo, NY
Poker Room: No
Seneca Gaming and Entertainment
Location: Irving, NY
Poker Room: No
Seneca Gaming and Entertainment
Location: Salamanca, NY
Poker Room: Yes
Seneca Niagara Casino
Location: Niagara Falls, NY
Poker Room: Yes
Tioga Downs & Casino
Location: Nichols, NY
Poker Room: No
Turning Stone Resort & Casino
Location: Verona, NY
Poker Room: Yes
Vernon Downs & Casino
Location: Vernon, NY
Poker Room: No
Another year, another online poker bill in the New York legislature. Actually, lawmakers simply took their bills from 2019 and reintroduced them to Racing, Gaming and Wagering committees in both houses.
There has been little movement in the movement toward legalizing online gaming in New York in recent years. In fact, little has been done for legalization since now-former State Senator John Bonacic retired. Even in his last year of work in 2018, he stopped his previously-strong push for online poker because his partner in the other house, Assemblyman J. Gary Pretlow, failed to match Bonacic’s efforts.
There is a new proponent for in the New York Senate in Joe Addabbo. He did introduce S.18 in 2019 and now again in 2020. However, Pretlow is still the House sponsor, and there has been little indication that poker has become a priority.
Could this year be different?
There’s always a chance. Supporters will have to wait and see.
Not holding my breath- but New York legalizing and regulating online poker would be amazing https://t.co/vMxUOjB4Nr
— Ari Engel (@AriEngelPoker) January 12, 2020
Progress in Past Years
As mentioned, Bonacic retired at the end of 2018. Prior to that, he championed poker, pushing bills through the Senate with positive votes. When those bills landed, year after year, in the House, however, Pretlow seemed to have different excuses each year as to why he was unable to even put it up for a vote.
Is Online Poker Legal In New York State
In 2018, Bonacic again ushered a bill through the Senate Racing, Gaming and Wagering Committee and the Finance Committee, only to let it stand because he had no indication that Pretlow would move on anything in the House.
It had been frustrating to say the least, for Bonacic and poker players alike.
Addabbo Tags in with S.18
Upon Bonacic’s retirement, State Senator Joe Addabbo became the Chairman of the Racing, Gaming and Wagering Committee. He also stepped up to champion S.18 at the very beginning of 2019.
The interactive poker bill was written as others had been in the past, to declare poker a game of skill and exclude it from legal gambling prohibitions in New York. Essentially, it would amend Article 15 to allow poker based on the US v. DiCristina case in which a New York Federal Court declared poker a game of skill and exempt from violating the Illegal Gambling Business Act (IGBA).
S.18 called for the establishment of a regulatory framework in which up to 11 operators could operate online sites for players within New York’s state boundaries. Operators would pay a one-time licensing fee of $10 million, which would be applied to tax obligations for the first 60 months of operations. Those licenses would be effective for 10 years. In addition, operators would be a tax rate of 15% on gross gaming revenue.
Pretlow introduced a companion (identical) bill as A.4924 about one month later.
By May 2019, it was apparent that the bill was dead for the year. Sports betting became the priority. In the months that followed, Addabbo admitted that mobile sports betting took precedence, and poker would not be presented for debate until sports betting laws were satisfactory.
Addabo and Pretlow Revive Poker Bills
On January 8, 2020, both bills came back to life. Both S.18 and A.4924 were referred back to their respective Racing, Gaming and Wagering committees.
At the same time, Addabbo reintroduced S.17D to regulate mobile sports betting. And on January 13, that bill unanimously passed the Racing, Gaming and Wagering Committee to move on to the Finance Committee.
Addabbo is pushing internet sports betting hard, though it is unclear if he will continue on the traditional path or try to include sports betting expansion in upcoming budget talks.
Given the significant $6 billion budget deficit and dire need for revenue, along w/ educational funding, mobile sports betting in NY still remains a credible, untapped, obtainable source of funds to address these fiscal issues.
New York Online Poker Legal Forms
— SenatorJoeAddabbo (@SenJoeAddabbo) January 11, 2020