While Pennsylvania and California lawmakers try to hash out online gambling legislation, New York lawmakers have taken an interest in the industry as well. On Wednesday, the New York Senate Standing Committee on Racing, Gaming, and Wagering held a hearing to discuss the possibility of legalizing online poker in the Empire State. See the details.

The committee is chaired by State Senator John Bonacic, who introduced online poker-only legislation earlier this year. In attendance were seven witnesses, who included representatives from land-based casinos and racinos along with the Poker Players Alliance (PPA). The hearing was largely positive for online poker proponents, but was sparsely attended by Bonacic’s colleagues in the state assembly.

The witnesses who spoke on behalf of brick-and-mortar casinos gave strong testimony in favor of iGaming. Many of those speakers, like John McManus from MGM Resorts International, feared their casinos would be left behind if they didn’t keep up with the demand for online gaming. He highlighted that ever since technology has become capable of offering iGaming, the industry has thrived, regulated or not.

“Prior to 2006, it was a Wild West and anyone who wanted to participate did,” he said. “It’s not if you want to have an online poker market, one exists. Prior to Black Friday, estimates were a $1 billion market in the US. From our perspective, having a safe and regulated internet poker industry that can provide tax revenue and all the benefits that come from that to the state is the way to go.”

That argument is often used by pro-online gambling legislators to bolster support for regulating the industry and counter the claims that casino billionaire Sheldon Adelson (pictured) has used in his push to ban iGaming at the federal level.

Adelson also argues that operators can’t “know their customers” when they make bets online. At the hearing, PPA Executive Director John Pappas countered that notion by reminding legislators that online gaming providers have a wealth of information at their disposal, including customers’ Social Security numbers, driver’s licenses, and credit cards. Read Pappas’ testimony.

“The online game tracks every activity, while at a brick-and-mortar casino someone can walk in, lose a paycheck, and walk out without anyone noticing,” he said.

Richard Schwartz of Rush Street Interactive, a company hoping to open a racino resort in New York, was also in favor of online gambling. He believes that a legal iGaming industry would fend off the threat of losing market share to neighboring states like New Jersey, where the activity is regulated.

Tom Balanceof Borgata (pictured) reassured lawmakers that online gambling would not cannibalize revenue from the state’s casinos. “I was in a position to either participate or give the business up to competitors, so I got in the game,” he said. “Fortunately, what I found is that the online gaming customer is a different customer than the land-based customer… The online customer is more of a nibbler, playing for a few minutes and getting out. We found that an excellent addition to our distribution network.”

The only pushback that the panel received was from James Featherstonhaugh, who represents the state’s nine racinos. He suggested taking things slowly until three planned racinos are up and running and waiting to see if Adelson’s anti-iGaming lobbying efforts are successful. Interestingly, the casino magnate’s anti-iGaming team was absent from the hearing.

David Satz of Caesars Entertainment called for just the opposite in his own testimony, recommending that the assembly take action as quickly as possible in order to protect itself from any future legislation banning the industry countrywide.

While the hearing was largely positive, it was attended by only two other lawmakers, both of whom left early to attend previously scheduled engagements. The hearing is a positive first step, but the lack of interest in discussing the matter implies that a bill will not be passed in the near future.

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