Relates to allowing certain interactive poker games

Section 1400. Legislative findings and purpose. Provides for legislative findings. Section 1401. Definitions. Provides definitions.

Section 1402. Authorization. Authorizes the New York State Gaming Commission promulgate regulations in order to implement interactive gaming and to offer up to 11 licenses to operate interactive gaming. Licensees shall be required to be licensed by the state to offer either video lottery gaming pursuant to Section 1617-a of the Tax Law or operate a Class III gaming facility pursuant to Article 13 of the Pari-Mutuel Wagering and Breeding Law. Each license fee shall be in the amount of $10,000,000 and the license shall be in effect for 10 years. This license fee shall be applied as an offset against the taxes paid over the first sixty months of operation.

Section 1403. Required Safeguards/minimum standards. Provides that the New York State Gaming Commission shall require licensees to implement certain standards to protect the public against underage gaming, fraud and compulsive gambling.

Section 1404. Scope of licensing review. Provides that the New York State Gaming Commission shall thoroughly review the background of any applicant seeking a license to provide interactive gaming to the public.

Section 1405. State tax. This section provides that internet poker licensees shall pay a tax of 15% of their interactive gaming gross revenue to the state.

Section 2: Amends Penal Law section 225.00(1) as to the definition of a contest of chance.

Section 3: Amends the Penal Law by adding a new section 225.36 known as the Interactive gaming offenses and exceptions.

Section 4: Effective date.

Existing law

Under New York penal law a person engages in gambling when he or she stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his or her control or influence, upon an agreement or understanding that he or she will receive something of value in the event of a certain outcome. Games of skill are not considered games of chance under the current penal law definitions. JUSTIFICATION :

Presently, numerous New York residents are participating in illegal, unregulated and unsafe gaming operations which offer games of chance over the Internet. This bill will allow the state to license operators that meet the high standards set by the state and offer limited games of poker which require a high level of skill. This bill will require such operators to take steps to protect consumers, combat compulsive gaming, and prevent minors from accessing online gaming sites. In addition, this legislation would create additional revenue for the State of New York by clearly defining certain variants of poker, "Omaha Hold'em" and Texas "Hold'em," as games of skill and thus allowing licensed interactive gaming operators to offer these games to the public. Thus, not only this will help New York regulate an industry that is present operating without oversight in New York State, but also generate additional revenue from taxes and licenses fees associated with a licensed online poker system in New York State.

Legislative history

S.6913-A of 2014: Died in Senate Racing, Gaming and Wagering Committee

Fiscal implications

Increased tax revenue to the state through taxing interactive gaming as well as up to $110,000,000 generated from the licensing of up to 11 interactive gaming operators.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.