Online Gambling License in New York

The New York State Gaming Commission (NYSGC) is the body responsible for regulating all forms of legal gambling in New York State. Their responsibilities cover regulating casinos, pari-mutuel and horse racing, sports betting, charitable gambling, lottery, and daily fantasy sports betting.

The Commission’s role is to ensure that all gambling is conducted fairly and that the revenue from gambling activities goes to public services. In fact, according to the reports from 2023, they’ve distributed $4.2 billion for public schools, $38.2 million for charitable organizations, and $33 million for New York’s local governments.

The Commission consists of seven members, one acting as a Commission Chair. They are all appointed by the Governor of New York. After being appointed by the Governor, each member must be confirmed by the New York State Senate.

Types of Gambling Regulated by the NYSGC

The New York State Gaming Commission regulates various forms of gambling, including:

Commercial Casinos

The legal framework changes that came into the act over a decade ago, in 2013, allowed the creation of up to seven commercial casinos, all regulated and overseen by the NYSGC. The New York State Gaming Commission oversees the operation of these casinos and is in charge of issuing licenses for each and every one of them. Currently, four casinos operate here under the Upstate New York Gaming Economic Development Act.

The human resources office of the Commission issues Occupational Licenses for the video lottery, commercial casino, and Indian gaming. The application is straightforward, requiring a background check and a fingerprinting process.

The Enterprise or Vendor Licenses for Video Lottery and Commercial Casinos are processed through the Division of Gaming, part of the Commission. Applicants for this license must fulfill all requirements, including providing a full outline of the internal controls and means for ensuring player security, and they must demonstrate local support. If granted, the license is issued for an initial 10-year period and can be renewed afterward.

The Commission has the right to suspend or take away any license if it finds suspicions of any illegal activity.

Lastly, the Commission is in charge of overseeing proper tax revenue allocation. Currently, 30% of slot revenue and 10% of table games are allocated to 80% of education and property tax relief. The other 20% is split equally and goes to the host municipality, the host county, and the non-host counties within the counties. The non-host counties get a percentage of the tax revenue based on the number of residents.

Sports Betting

The New York State Gaming Commission oversees the licensing of all operators offering sports betting, whether in person or on mobile apps. It regulates the betting rules and the list of allowed bets. The state also regulates mobile sports betting, and issues limits on different sports and leagues that can impact sports betting. For example, the law strictly forbids betting on college teams from New York, no matter where the event occurs. As a result, betting on athletic events and high school sports is also not allowed.

The NYSGC also oversees taxation on all revenues. The state imposes a 51% tax on mobile sports betting revenue, which funds public schools. However, $5 million each year supports sports programs for underserved youth, and $6 million funds problem gambling education and treatment.

Lottery

The lottery has been legal since 1966, as per Article 34 of the Tax Law. Currently, the Commission oversees all kinds of lottery games: scratch cards, draw games, and video lottery terminals (VLTs).

The games span from favorites such as Mega Millions, the New York Power Play, and the New York Lotto, to instant-win scratchoffs like Instant Take 5, 1,000,000 Grande, Double Doubler, and dozens more. The Commission regulates and oversees ticket sales and VLTs and ensures that lottery funds are appropriately allocated.

Horse Racing

The legal framework allows pari-mutuel, simulcast, off-track betting, and betting on live races. All tracks in the State of New York are overseen, and they operate legally and are licensed by the Commission. Its purpose in this field is to ensure complete racing integrity, license all racing participants, and ensure fair race betting activities. The NYSGC is also in charge of administering anti-doping measures and collaborates with other authorities to ensure that practices for high animal welfare are in place.

Daily Fantasy Sports Betting

New York defines fantasy sports as contests where players pay fees to compete for prizes. Contestants use statistics to assemble a team and predict winners based on performance.

The NYSGC has a list of approved interactive fantasy sports operators. These operators must pay 15% of their gross revenue to the state. They also pay an additional 0.5% annually, up to $50,000. The tax revenue helps support public school education.

Charitable Gaming

There is a unique sub-authority within the Commission called the Division of Charitable Gaming. It is in charge of investigating and monitoring charitable gaming tickets. It also verifies the operators who offer bingo, bell jars, casino nights, and raffle events for charitable purposes throughout New York State.

The Division licenses manufacturers and distributors of bingo games and issues games of chance identification numbers for operators whose raffle exceeds $5,000 in proceeds. To be able to organize these events, an organization must be active for more than one year and maintain a membership roster.

Tribal Gaming

The Commission collaborates with tribal authorities to ensure compliance with state and federal laws, even though tribal gaming is regulated under the federal Indian Gaming Regulatory Act (IGRA). The tribes maintain primary authority over the regulation within their territory. 

Regulatory Framework of the NYSGC

Several laws govern the work of the New York State Gaming Commission (NYSGC). The main law is the New York State Administrative Procedure Act (SAPA). This law explains how the Commission makes rules and what information it must share with the public.

Article 34 of the Tax Law explains the State Lottery. It details how lottery money is used and how scratch card retailers operate.

Article 9-A covers charitable gaming. It explains how the NYSGC prevents fraud in these activities. Chapter 59 of the 2021 laws focuses on mobile sports betting. It gives the Commission the power to issue licenses for this.

Daily Fantasy Sports (DFS) falls under the Interactive Fantasy Sports Betting law, found in Chapter 237. The New York Racing Pari-Mutuel Wagering and Breeding Law, specifically Sections 100-227, regulates horse racing.

The Indian Gaming Regulatory Act (IGRA) regulates tribal gaming. The Upstate New York Gaming Economic Development Act of 2013 legalizes commercial casinos. Lastly, Article 225 of the Penal Law defines violations that the Commission looks into.

FAQs about the New York State Gaming Commission