iGaming Stalls in New York: Why Online Casinos Face a Tough Road in the US

The initial excitement surrounding the American iGaming market is facing a significant reality check. While industry insiders long assumed that online casinos would follow the rapid success of sports betting, a period of stagnation is now emerging. The Empire State, New York, is particularly in focus. Anyone hoping that legal casino apps would soon cross the border from Pennsylvania or New Jersey will be disappointed. The political leadership in Albany is currently showing little willingness to expand digital gambling beyond its current limits.

Carrie Woerner, chair of the Assembly’s committee on racing and gaming, offered blunt words regarding the current situation. She describes the legalization of online slots and table games as a project that is perpetually five years away. Instead of rapid progress, she sees an attitude that repeatedly pushes the issue back by years. This makes it clear that New York will not be joining the seven or eight U.S. states that already offer a regulated iGaming environment anytime soon. The industry's initial certainty has given way to deep skepticism regarding short-term expansion.

Numbers and facts

The economic dimension of this decision is massive. New York faces a cumulative budget gap of $34 billion through the state fiscal year 2029. Senator Joe Addabbo, a staunch advocate for iGaming, estimates that legal online casinos could funnel about $475 million annually into state coffers. In comparison, neighboring New Jersey shows what is possible: the market there is on track to take in $3 billion this year. Since New York has double the population, some experts believe revenue of up to $19 billion over three years could be realistic, provided market conditions are similarly attractive.

However, political concerns outweigh the raw numbers. Carrie Woerner emphasized worries about consumer purchasing power. She explained the situation as follows:

"We’re seeing a stagnation of disposable income in the economy generally. So if disposable income is stagnant, the more money you’re spending on gambling, that’s less money you’re spending on going out to dinner, on going to movies, or shopping on our Main Street." - Carrie Woerner, Chair of the Committee on Racing and Gaming, New York State Assembly

Background

A primary reason for the slow pace is the lack of broad public pressure. Unlike sports betting, which experienced an enormous grassroots movement and massive advertising presence following a 2018 Supreme Court decision, iGaming remains more of an industry niche topic. Additionally, there is resistance from powerful hotel and casino unions. They fear that online offers would draw guests away from physical casinos, thereby endangering jobs in cities. The memory of the decline of racetracks following the introduction of off-track betting in the 1970s runs deep.

Furthermore, the stance of Governor Kathy Hochul plays a decisive role. She has consistently ignored iGaming in her recent budget proposals. While Hochul is not a general opponent of gambling—as evidenced by the approval of three new land-based casinos in the New York City area—the focus is clearly on physical jobs and local development. Senator Addabbo has announced plans to reintroduce his bill SB 2614 in 2027, but until then, the market remains in wait-and-see mode.

Why it matters for German players

For German players, the development in the U.S. shows that strict regulation and political skepticism are not purely national phenomena. In Germany, the market has been clearly regulated since the Interstate Treaty on Gambling 2021 (GlüStV 2021). Those who wish to play safely in this country should exclusively use platforms listed on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL). Strict player protection rules apply there, such as the cross-operator deposit limit of 1,000 euros per month, monitored via the LUGAS system. While New York is still debating the protection of "Main Street," measures like the 1-euro stake limit per spin for online slots are already active in Germany to prevent excessive gambling behavior.

What it means for GGL-licensed casinos

Casinos with a GGL license benefit from the legal certainty that many providers in the U.S. currently lack. While German operators must adhere to tough advertising restrictions and technical requirements, they operate within a stable legal framework. The New York example illustrates that unregulated markets often struggle with illegal providers who offer no player protection. Senator Addabbo pointed out that the illegal market in New York is very robust and offers no safety nets. GGL-licensed providers distinguish themselves through transparency and state supervision, which strengthens user trust in the long run.