Las Vegas Casinos and the state of New York are separated by over 2,000 miles and several fly-over states. So it doesn’t seem likely that many Vegas casinos would take a deep interest in the push for regulated iGaming in New York. This is especially the case with Vegas-based MGM Resorts, which doesn’t own a casino in New York nor have any immediate interest in doing so. But as you’ll read below, MGM has a very good reason for joining New York’s online gaming push.
iGaming New York will be difficult but worthwhile
As the New York Times recently reported, MGM has been in discussions with New York State Senator John J. Bonacic about legalizing online poker. Bonacic, a Republican who represents the Catskills, is leading the push for online poker in New York. He believes that iPoker could be a good source of revenue for his state. But how good? Here’s a look at what the New York Times wrote about the matter:
An analysis commissioned by MGM estimated that New York residents bet as much as $110 million in illegal online poker games. The study concluded that the state could reap $50 million to $80 million in annual taxes by converting those players to legalized games, as well as an additional $80 million from selling licenses to operate the sites.
A recent Morgan Stanley report predicts that New York will have legal iGaming by 2016. But Bonacic is taking a much more cautious approach, warning MGM officials that this won’t be an easy task.
Why MGM is pushing so hard
It seems strange that MGM is so interested in New York online gaming, given that the company has virtually no iGaming presence themselves. But what they do have is half of Atlantic City’s Borgata. Seeing as how MGM has a large stake in New Jersey’s most popular resort, they’ve been mulling over starting their own branded online casino.
So if New York regulates iGaming, it would very likely lead to a pact with neighboring New Jersey. Adding everything up, this would give MGM’s online casino and poker site access to both New York and the Garden State.
New casino licenses still need to be determined
Currently, MGM is behind a Facebook and Twitter push called “Let NY Play,” which alludes to legalizing online poker in the state. But no matter how many people get behind this campaign, the government probably won’t take it seriously until the state’s four new casino licenses have been handed out.
The NY Times pointed to Democratic assembleyman J. Gary Petrlow as one example. Petrlow sponsored a bill similar to Bonacic’s, but said that he’s only heard “from one citizen in favor of online poker” and plans “to hold off even looking at this with any kind of seriousness until after” the licenses situation has been handled. Even still, this doesn’t appear to be holding MGM Resorts back from trying to get iPoker legalized in New York as soon as possible.