New York Poker Bill (S5302B) Status and Details

Legal and regulated online poker came on step closer to reality on Tuesday in New York. Senate Bill S5302B passed by a 9-0 vote through the Racing, Gaming and Wagering Committee earlier today. This marks the first time any pro-online poker bill has made it beyond a simple introduction in the Empire State.

Editor update: the bill passed, and then failed to gain traction.

S5302B still has a long way to go, but today was an important first step for the legislation. The bill, sponsored by Senator John Bonacic (who also chairs the committee), passed unanimously and was immediately referred to the Senate Finance Committee. Now it is the Finance Committee’s turn to schedule a hearing and hold a vote to see where this whole thing goes.

In a press release issued by the Poker Players Alliance (PPA), executive director John Pappas said

“The PPA thanks Chairman John Bonacic and the Committee for acting quickly to pass iPoker legislation through the Senate Committee on Racing, Gaming and Wagering. If passed into law, the bill would provide New Yorkers who play poker online with a safe and regulated environment, while bringing in revenue for the state. We encourage the Finance Committee to move quickly to usher the legislation through the Senate, and also urge the Assembly to move forward with their respective legislation.”

New York Online Poker Bill (S5302B) Details

S5302B (full text here) applies only to online poker and not other forms of gaming. If passed, the bill would require operators to pay a $10 million fee for a 10-year license plus a tax of 15% of gross gaming revenue. The bill allows a maximum of 10 operators to apply for licenses and would allow poker sites in New York to enter player-sharing compacts with other states with legal online poker sites.

Also included in the bill are provisions designed to regulate the industry and ensure player protections. Licensed operators would be required to ensure all customers are at least 21 years old, located inside New York State at the time of access and that customers’ private information is protected.

Furthermore, the bill would require operators to:

• Hold player funds in segregated accounts separate from operational funds
• Take reasonable measures to prevent cheating and collusion
• Include appropriate safeguards to minimize compulsive gaming and provide resources to help problem gamblers

This is the third straight year S5302B has been introduced in New York, but today was the first time it has made it over its first hurdle. In previous years, the bill failed to make it past its first committee vote. This year’s bill has been amended since it was first introduced and no longer includes the “bad actor clause” that would have prevented the licensing of anyone involved with taking online poker wagers after December 31^st, 2006.

If the bill goes on to become law, it would be implemented within 180 days and the first licenses could be issued 180 days after that. Things will move quickly if this bill manages to overcome the various legislative hurdles it needs to overcome in becoming law.

One other potential holdup is the desire of some legislators to see New York’s recently-approved brick-and-mortar casinos go live before acting on S5302B. John Pappas of the PPA also mentioned this in today’s press release:

“It would be a mistake for New York to wait for its brick-and-mortar casinos to go online. Moving Internet poker legislation now would establish an existing customer base of poker players for brick-and-mortar casinos when they open their doors for business. It’s New York’s turn to give their consumers what New Jersey, Nevada and Delaware constituents already have—a safe and regulated online market that is accountable to the players, regulators and law enforcement”