New York State Gambling Tax
New York has one of the longest running relationships with gambling of any state in the US. The state’s first gaming laws were introduced in the 17th century. Although betting is an old activity, laws are constantly evolving (especially recently), and these new legislative shifts lead to a lot of confusion for players.
- New York State Gambling Tax Exemption
- New York State Gambling Tax Rates
- New York State Gambling Losses Income Tax
This NY gambling page looks at all forms of gambling in New York and discusses the state’s laws that cover the activities. We will cover topics, such as casinos, both online and land-based, sports betting, and poker among others. If you know exactly the topic you’d like to know more about, click on one of the navigation buttons to jump straight to the relevant section.
Gambling in New York? What Activities are Legal
Contents
New Hampshire and Tennessee impose personal income tax only on dividend and interest income. Accordingly, residents of these nine states do not have to pay to their state income tax on gambling winnings. That leaves forty-one states with a general personal income tax. Takeaway #1: In general, a state that imposes a personal income tax levies a. It depends on where the casino is. Most of the casinos in the U.S. Deduct a state tax on slot payouts above a certain amount, then also, you are supposed to claim winnings as income when you file. New York is on track to collect more casino tax revenue than Nevada this year. If that happens, Nevada will become the No. 3 state in the union for collecting tax revenue from the casinos within it.
- Gambling in New York? What Activities are Legal
- Online Gambling NY: Sports
- Online Poker
- NY Gambling Overview
- Famous Gamblers from the Empire State
- Frequently Asked Questions
There are many different things that come to mind when one talks about betting. There are charitable ‘casino nights,’ wagers amongst friends, and horse races. On this page, however, we’ll be focusing on large-scale operations such as casinos, sports betting, poker rooms and more. Directly below, we answer what activities you can legally play when gambling in New York. We look at both land-based gaming possibilities as well as the online gambling NY has.
New York Casinos
The most popular form of gambling is done at the handful of New York Casinos. Nothing compares to the glitz and glamor that someone feels when they step onto the game room floor. New York is one of the more restrictive states when it comes to casino gaming, but residents and visitors do have a few gaming options when in the state. The Resorts World Casino is the only gambling hall in NYC, but there is a nice selection of Indian casinos as well as racinos peppered throughout the state (ex. Yonkers Raceway).
At NY’s various land-based gambling sites, you can legally play all of the most popular casino games that we have come to know and love throughout the years. NY doesn’t have traditional casinos yet, but Native American gaming halls and racinos are legal. For those who don’t know what a racino is, it is a horse track that is allowed to carry traditional games, such as slots, but due to the state’s laws can only offer electronic table games including: baccarat, roulette and blackjack. To play traditional live card games you’ll have to visit one of the Indian Casinos in New York.
Online Gambling NY: Casinos
Many players ask “is online gambling legal in NY? The answer, unfortunately, is that there is currently no legal way, in which to play online casino games that payout real cash when in New York. In legal markets, online casinos are quickly becoming the most popular way, in which to play table and slot games. However, until the New York online gambling laws are changed, you won’t be able to play online, even if you are of legal gambling age.Popular Online Casino Games:
- Slots
- Baccarat
- Poker
- Blackjack
- Roulette
- Video-poker
- Sic Bo
- Bingo
- Scratch Cards
It isn’t all doom and gloom in the US though. Although many states have historically taken hard-lined stances towards gambling, recently many places have taken giant leaps forward towards legalizing the activity. New Jersey has legal online casinos, and many New Yorkers have started to gamble using these NJ sites. Gambling at a NJ site, however, is illegal when you are in NY, regardless of what people tell you. Nevertheless, many legislators know it is a tough task to try and halt the spread of online casinos. So, who knows? Perhaps there will be legal online gambling in New York sometime in the future.
Sports Gambling NY
The New York gambling laws are more lax when it comes to sports betting. Officially, NY sports gambling is legal. The State Gamging Commission has approved sports betting at four upstate casinos. However, New York politicians have been playing ping pong back and forth with the law, while they debate the minor details of legality. The current law requires that players be physically present when sports gambling in NY.
Where to Gamble on Sports In NY:
- World Catskills (Kiamesha Lake, NY)
- Rivers Casino (Schenectady, NY)
- Del Lago Casino (Tyre, NY)
- Tioga Downs (Nichols, NY)
To play, you’ll have to venture to the World Catskills in Monticello, NY, the Rivers Casino in Schenectady, the del Lago Casino in Tyre or the Tioga Downs which is situated west of Binghamton. If you’re in the city, the best option for sports bets at this time would be to pop on over the NJ to gamble.
Online Gambling NY: Sports
Once confined to a few locations around America, sports gambling has experienced a major shift after the federal sports betting ban was overturned in May 2018. Now, it is up to states to decide if they will legalize the activity or not. As I stated earlier online gambling in New York is currently prohibited and this extends to sports betting.NY has legalized sports betting but has yet to make a ruling as to whether or not to allow players to place bets from mobile devices. Recent reports suggest that wagering on sports in New York will, for the time being anyway, remain limited to physical sports bets. However, State Sen. Joe Addabbo (D-Queens) said that this doesn’t rule out mobile sports gambling in the future. Should New York online gambling laws change, we will update the info on this page.
Daily Fantasy Sports to Scratch Your Sports Itch
Sports fans do have one online gambling option in New York – Daily Fantasy Sports (DFS). DFS contests are available in the state, but there is a debate about whether DFS actually counts as sports gambling or not. Most have agreed that these sports contests involve enough skill/knowledge that they don’t qualify as sports betting. Until an official ruling is made, the nation’s top DFS operators still offer their products to New Yorkers.
Online Poker
Online poker, like other forms of online gambling in New York, is currently illegal. It is possible to play online at one of the popular online poker rooms, but it is not allowed to play for real money. If you’d like to gamble in New York with a poker game, you’ll need to go to a commercial casino. Social games or casino nights are allowed, but you aren’t allowed to make a profit when playing.
Popular NY Poker Events
Recently the World Poker Tour announced the first ever Deep Stacks event in New York. The event will take place at the Rivers Casino and Resort in Schenectady, NY. 2019’s event will require a buy-in of $1,100. The WPT also has a stop at the Fallsview Casino Resort in Niagra Falls, although on the Canadian side of the falls. Either way, it offers a good opportunity for skilled gamblers to play the popular card game.
Gambling on the New York State Lottery
The New York Lottery, founded in 1966, was the second lottery to be set up in an American state, The NY lottery is connected to the multi-state systems, so residents can play in the huge games like Powerball and Mega Millions. You have to buy tickets in person though, as online ticket sales have not yet been introduced or announced. Since 1967 the lottery has raised 64 billion USD for K-12 schools in New York. In this regard, the NY lotto is similar to that of other state lotteries in that it was set up as a way to generate funds for the state. Nearly 4.5 billion USD has been won as prizes by those gambling in NY on the lotto.
NY Gambling Overview
For a state that isn’t particularly known for its land-based betting options, especially considering Atlantic City is just a short stone’s throw away from NYC; the Empire State is a surprisingly lucrative gaming market. Those gambling in New York using slots spent nearly 40 billion USD in 2019 alone. This figure doesn’t even include table games at Indian Casinos, pari-mutuel horse bets and the Lotto. In addition, online gambling NY options are extremely limited, by that I mean nonexistent. If the laws changed, the market would generate even more money. Below you’ll be taken through the various New York laws governing online betting, the state’s history and how to gamble responsibly in the state.
Important New York Gambling Laws
The first New York gambling law was passed in 1656 when the territory was still under Dutch control. New Netherlands (NY’s name at the time), banned all gambling on the Sabbath. During the revolution, the British outlawed lotteries after it was discovered that they were used to help fund the rebel cause. After independence, convicted lottery patrons were pardoned.
The State’s first constitutions did not mention gambling until 1821 and the modern prohibition of the activity started in 1894. Since that year, a few key amendments were implemented in the years 1939, 1957, 1966, and 1975, which legalized pari-mutuel betting on horse racing, charitable bingo, the State Lottery for Education and charitable gaming respectively.
The first Indian casinos in NY emerged after the passage of the 1993 constitutional amendment, authorized the creation of casinos on native land. 2011 experienced a step backwards when US Federal law banned all online gambling. In 2013 the state finally permitted commercial casinos, however, there are not many in NY. The biggest change in recent year to the gambling laws of New York, is the legalization of sports betting. The state is currently rolling out its first legal sports betting infrastructure.
In terms of laws that are going to affect the individual gambler. The legal gambling age in New York is 18+ years of age. However, many gambling locations have limited their customers to 21+ so that they can legally serve alcohol on the game room floor without having to worry too much. The New York State gambling winnings tax lies somewhere around 3% depending on the amount won.
Gambling Responsibly in New York
Although many New Yorkers have a healthy relationship to gambling, there are some players that may struggle with addiction. The Empire State has a few options for those who seek help. The body in charge of overseeing responsible gaming is the NY Council on Problem Gambling. The NYCPG has worked since the 70s to provide people with the help they need.
The Board’s website offers numerous resources including a gambling hotline. NY is an extremely diverse state, so the help found on the NYCPG website is available in nine different languages. Another suitable option for problem gamblers is Gamblers Anonymous. If you visit the website, you can find local help based on your specific area.For player’s who would like to quit betting, rather than foster a healthier relationship to the activity, the best option is probably voluntary self-exclusion. If you visit the New York State Gaming Commission website, you’ll find steps on how to exclude yourself from casinos, racetracks, the lottery and fantasy sports in NY State.
History of Gambling in New York State
Gambling in New York goes right back to the 1600s. Laws governing betting go back just about as far, with the first legislation concerning gambling in what is today New York State passed in 1656. This was merely to forbid betting on the Sabbath, in order to further religiosity in the territory of New Netherland. However, this only covered certain games, and was only regarding “church hours”, displaying the area’s relatively relaxed attitudes at the time.
From this early start, there have been dozens of pieces of law passed by the various governing authorities in the area. However, most have been to restrict certain practices, with no individual New York gambling statute or law outright forbidding gambling in general.
New York’s Constitution, ratified in 1894, restricted gambling rights heavily. However, since then there have been four important exceptions, allowing for betting within the State: pari-mutuel betting on horse racing, religious, charitable and non-profit bingo, State lottery, and finally an extension to the allowance for religious and non-profit gambling to include games of chance.
Famous Gamblers from the Empire State
When people think about famous gamblers, they are not thinking about a guy who won big spinning the reels, or a successful sport better, they are thinking about poker players. During the first decade of the 21st Century, the world went nuts for poker. New broadcasting deals transformed the card game into one of the most popular spectator games on television. During the ‘poker boom’ a few stars emerged. Enthusiasts were drawn to the personalities and play styles of the world’s best card sharks. Below is some info about some of the most famous gamblers from New York
Erik Seidel
Erik Seidel is, without a doubt, the most celebrated poker player from the Empire State. For most players, winning a WSOP bracelet is a career accomplishment. Seidel, however, has won 8 throughout his career and has reached the final table a staggering 35 times. Erik’s first major bicvtory came in 1988 when he was the runner-up at the WSOP Main Event. Seidel sits atop the NY all time money list and 3rd in the global money list having earned himself over $35 million playing professionally. Currently, Seidel lives in Las Vegas.
New York State Gambling Tax Exemption
Bryn Kenney
Bryn Kenney
Coming in at number two on the New York all-time money list is Bryn Kenney. Keeney has also eclipsed the $30mil mark throughout his career and is nearly 30 years Seidel’s junior. Kenney flaunts his New York roots proudly and can often be seen donning a Yankees or Knicks cap when on tour. Kenney has earned one gold bracelet in his career, which really puts Seidel’s accomplishments into perspective considering Kenney has earned nearly as much as Seidel, but not nearly as many bracelets. Kenney won the bracelet in 2014 after winning the $1,500 Mix Six-Handed event.
Key State Facts
As one of America’s most diverse and forward-thinking states, New York is one of the most desirable places to live in the world. At the center of all of this is of course, New York City, a thriving metropolis known as the ‘city that never sleeps’ packed with towering skyscrapers, busy streets and bullish New Yorkers. Below you can see some of the key New York state facts.
Population | 19,542,432 |
---|---|
Min. Income/month | $1,926.44 |
Largest Land-based Casino | Resorts World Casino |
Gambling Commissioner | NYS Gaming Commission |
Spoken Languages | English 67.9%, Spanish 15.5%, Chinese 3.3% |
Famous Sports Teams | New York Yankees, New York Giants, New York Knicks |
New York Tax Authority | Department of Taxation and Finance |
Link to the State Law | http://public.leginfo.state.ny.us/lawssrch.cgi?NVLWO: |
Gambling Winning Tax | Up to 3% (depending on winnings amount) |
State Website Link | https://www.ny.gov/ |
New York Gamblers | Stu Ungar |
New York is famous worldwide for many things; hip hop music, street food and the nightlife. But some of the most popular things about NYC are its sports teams. Visit any country in the world and you’ll find a New York Yankees cap. New Yorkers are fanatical about their sports teams and the games they play.
New York State Gambling Tax Rates
Conclusion: Future Outlook of New York Gambling
As you can see above, New York doesn’t have the most restrictive of gambling laws, but the state is also far from being one of the most liberal gambling territories in the US. Players have a few legal gambling options in New York including Indian casinos, racinos, the Lottery, horse race betting and on-site sports betting. Only time will tell whether or not online gambling is in the cards for NY, but if trends continue, we are likely to see some liberalization of the New York state online gambling laws. Until this happens however, you won’t find any online gambling in New York.
Frequently Asked Questions
The New York gambling laws seem to change week to week and the courts are experiencing a logjam when it comes to making decisions about gambling. This has led to a lot of confusion, and may players have asked us for some clarification. Below are the most common questions we receive with regards to New York gambling.
Does New York have casinos?
There are currently 25 casinos registered in the state of New York. Native American casinos make up the vast majority but there are also some dedicated commercial spaces in the city with gambling licences.
Can you gamble online in NY?
Gambling online is currently not yet legal in the state of New York. There are currently no licensed online casinos in the state, and it is a federal crime for a NY citizen to register and play at a site based outside of the state
Is sports gambling legal in New York?
Sports betting was made legal in May 2018 in the state of New York. However, the state has yet to see its first official sports bet be made. The regulation and monitoring of the industry is still being decided on a federal level which has delayed the issuing of licences.