Online betting went legal in New York State at the beginning of 2022. In the first two months of legalized online gambling in New York State, New Yorkers surpassed Las Vegas and Atlantic City to become the #1 place in America for gamblers to bet by wagering a staggering $2 Billion on the approved mobile apps. This, in turn, brought much-needed relief in the amount of $80 million to the state treasury.
So, what does this new law mean legally for our ESRTA members?
With the NCAA Road to the Final Four set to start, we thought it would be a good time to review the laws and regulations for our members to keep everyone compliant.
The new law makes a contradiction of an existing law. The New York State Liquor Authority advises that on premise betting still remains illegal per Alcoholic Beverage Control Law Section 106(6) which states that any business licensed to sell alcoholic beverages including restaurants and taverns — cannot “suffer and permit gambling on the licensed premises.” However, the new online sports betting law advises that patrons who are physically in a retail licensed bar, tavern or restaurant can now legally place bets on their own personal mobile device through the 9 mobile apps that have been approved by the New York State Gaming Commission. While ABC Law Section 106(6) is still an active law, the SLA has declared that they will not be charging licensees if individuals are placing bets on their telephones with legally authorized sites while at the premises of a licensed retailer. The bottom line – the only form of betting that can legally happen in your licensed premises is on a patron’s own personal mobile device, and only through the nine approved sports betting apps by the NYS Gaming Commission.
The new online betting law, while contradictory in nature to the existing SLA law, remains clear for our hospitality partners – you can permit your patrons to legally gamble on their own personal mobile device on one of the 9 approved sites by NYS. However, per the SLA, it is still illegal for licensees to permit sports betting pools, raffles or any other form of gambling on your premises. If caught suffering and permitting gambling onsite in a retail licensed premise, the State Liquor Authority stated the licensee will be violating the law and subject to charges.
This article has been researched and written for you by the lawyers at Linnan & Associates PA. Linnan & Associates is your one stop shop for all matters pertaining to the State Liquor Authority. Whether it be a renewal, licensing issues or disciplinary hearings, Jim Linnan has been representing the members of ESRTA for over 43 years. As the corporate counsel to ESRTA for 4 decades, Jim’s in-depth legal knowledge of the State Liquor Authority is unsurpassed in New York State. Visit us at www.linnanassociates.com; contact us at 518.449.5400.