Being one of the most famous states besides California, thanks to New York City, the state itself has an interesting relationship with gambling that changed frequently throughout history.
Between the early colonial days and the modern age, New York State has developed from a strict illegal state to a more lenient license-permitting one.
But let’s see how that journey started and what shaped its course over the last century.
Early Days of Gambling in New York
In the early 19th century, New York was the first state to ban gambling, with a constitutional ban enacted in 1821.
This ban remained in place for many years, leading to a thriving underground gambling scene, often controlled by organized crime, as was also depicted in Martin Scorseze’s movie “Gangs of New York”.
Despite these restrictions, gambling continued to be a popular pastime, with games like poker and numbers running being favorites among those who participated in illegal gambling activities.
Legalization of Horse Racing
Horse racing was the first legal form of gambling to be accepted in New York, and this legacy is reflected in the Big Apple’s legacy today, with the famous Belmont Stakes still being held there.
In 1939, a law permitting parimutuel wagering (a.k.a pool betting) authorized betting on horse races at tracks. This move was important because it marked the state’s first steps toward legal gambling.
Eventually, famous racetracks such as Belmont Park and Aqueduct Racetrack drew large numbers of racing enthusiasts.
Expansion of Legal Gambling
With the economic expansion of the time, legal gaming in New York flourished in the middle of the 20th century.
Bingo and charity raffles were legalized in 1957, and by 1966, initiating the New York State Lottery. Proceeds were then allocated to state education. The lottery also introduced large prize draws in the Powerball and Mega Millions games.
A major turning point happened in more recent history, however, when the passage of the Upstate New York Gaming Economic Development Act happened in 2013.
This act allowed for the construction of seven commercial casinos across the state, transforming New York into a significant player in the gaming industry. The New York State Gaming Commission was established to oversee these developments and ensure that gambling operations were regulated and safe.
For those interested in exploring alternative forms of legal and safe gambling sweepstakes casinos offer a wide range of options and special offers, allowing players to engage in virtual casino games.
Sports Betting
In recent years, sports betting has become a significant part of New York’s gambling scene.
Following the U.S. Supreme Court’s decision to overturn the Professional and Amateur Sports Protection Act in 2018, New York legalized in-person sports betting at a select few locations.
However, it wasn’t until 2022 that online sports betting became available, allowing residents to place bets anywhere in the state. This move has been seen as a significant economic boost, with millions of dollars in revenue generated since its inception.
Popular Games Today
Today, New Yorkers gravitate mainly towards the traditional lottery, sports betting due to the popularity of the NBA and NFL, and classic casino card games like slots and poker.
The convenience of online platforms has made these games more accessible than ever, attracting a wide range of players.
Comparison with the Neighboring States
The legalization of gambling in New York has positively affected the economy through job creation and revenue generation for local communities.
However, other neighboring states, such as New Jersey, have also enjoyed major economic benefits from legalizing online sports betting ahead of time.
New Jersey’s early adoption of online sports betting has seen it attract a considerable share of the regional market today, enhancing the regional competitiveness.
The history of legal gambling in New York reflects a gradual shift from prohibition to regulation and the consequent benefits that came from it. From its early days as a hub for underground gambling to its current status as a major gaming state, New York has come a long way.
The incentives behind legalization have been largely economic, aiming to boost tourism and revenue. As the state continues to evolve in its approach to gambling, it will be interesting to see how it compares economically with its neighbors in the years to come, especially those well-established ones like New Jersey and Connecticut.