Situated in New York, Nassau County is among the state’s most populous counties. Considered a central county within the New York metropolitan area, Nassau County enjoys a relatively stable economy. According to recent research, the unemployment rate in Nassau is lower than the US average. In addition, the county has seen job growth over the last year, and the average income of a Nassau County resident is 1.5 times higher than the US average.
Gambling is a popular pastime among Nassau County residents. As we already mentioned, the county is part of the US state of New York, which means its legal framework for gambling and betting is defined by the state. New York has one of the most profitable gambling industries, with lottery sales reaching $9 billion each year. Unfortunately, the New York Constitution prohibits most forms of gambling.
In 2013, New York residents voted for casino expansion that approved the establishment of up to seven casinos in the state. Currently, New Yorkers can legally gamble only at land-based casinos. The state also permits a limited range of other gambling activities, which we will discuss later in this article.
It is estimated that the state’s lottery sales total about $9 billion each year. One of the most profitable slots-only casinos is Resorts World on the Aqueduct Racetrack property in Queens. In 2016, it was announced that, under a state legislative deal, Nassau County would transfer its authority to install 1,000 video slot machines to Aqueduct Racetrack in Queens.
Under this agreement, Genting New York LLC, the company that operates Resorts World Casino, will make monthly payments to Nassau Regional Off-Track Betting Corp. Only two years later, it was revealed that the county was receiving only a small share of what it should have been paid.
Regulations Governing Land-Based Casino Industry in Nassau
Gambling in the United States is governed by legislation at both the federal and state levels. The federal government allows each state to tailor its own legal framework for the gambling industry. Gambling has always been a polarizing topic across the country. Authorities must consider the views of residents, local Indian tribes, and casino operators.
Although New York is among the states that have adopted a stringent approach to regulating gambling, casino fans in Nassau may legally place wagers on certain forms of gambling under Article 1, Section 9 of the New York Constitution, including:
- State-run lotteries
- Pari-mutuel betting on horse races
- Up to 7 casinos (including tribal establishments)
- Certain bingo and lottery games that raise funds for charitable organizations
Gambling: Regulatory Climate
Tribal Land-Based Casinos
Commercial CasinosNassau and Online Gambling
Online gambling is illegal throughout the state. Historically, New York has been known for its strict gambling laws. Fortunately, in the last few years, the authorities have slowly started to change their approach, and the industry’s future is beginning to look brighter.
Most online casinos that accept players from New York are located offshore, so casino enthusiasts do not need to worry about playing at a web-based casino. Moreover, many casinos allow New Yorkers to play for real money, so players from Nassau can enjoy their favorite games regardless of their preferences.
We hope that New York will soon regulate online gambling, as New Jersey, which already has an online casino network, has started to draw the attention of a large number of players from New York. This, in turn, means that the state of New York is losing money across the border.
Interestingly, New York made headlines in 2011 when a member of the US Attorney’s Office for the Southern District of New York filed criminal charges against the three largest online poker rooms serving US players. As a result, Full Tilt Poker and Absolute Poker had to stop offering their services to US players. The action resulted in $547 million in fines being paid to the US Treasury. The event was dubbed Black Friday.
Licensing Procedure
Land-based gambling facilities that can operate within the borders of the state of New York are required to have a license. To apply for a license, applicants must file a form that includes the following details:
- Contact information
- Trade names of the applicant
- Principal business address
- Date of formation of the business
- A thorough description of the business
- Details of compensation and stock structure
- Background information on shareholders
- Information about the applicant’s other gambling-related activities (if any)
- Copies of financial documents
Individuals who apply for a gaming facility license should know that the application fee is $1 million, and there is an annual fee of up to $75 million depending on the location. Once issued, the license is valid for 10 years. In addition, casinos must pay a 10% tax on all gross gaming revenue generated from activities other than slots. Gross revenue from slots is taxed at a rate of between 37% and 45%.
Because the provision of online gambling services is prohibited throughout the state, no regulator issues remote gambling licenses to operators. However, operators that offer virtual sports betting services need to register with the Gaming Commission and receive approval to conduct contests. Under the New York Racing, Pari-Mutuel Wagering and Breeding Law, Sections 1403 and 1404, applicants must undergo a complete background check and implement measures to prevent minors from participating in gambling activities.
For now, virtual sports betting businesses operate under a temporary license. It is granted only if the applicants operated in the state of New York before November 10, 2015, and file a form containing the following information:
- Contact information
- Information regarding the operator’s daily operations
- The operator’s responsible gambling strategy
- Information regarding the prize pools
The temporary interactive sports betting license is valid for three years and is free of charge. Once it expires, operators need to renew it to continue providing their services. In September 2020, it was announced that online sports betting legalization could net up to $900 million in annual revenue and $108 million in tax revenue for the state of New York.
The passage of the NY State Senate Bill 17D in 2020 authorized each of the seven retail casinos in the state to operate a mobile sportsbook. Under it, operators will need to pay a 12% tax on income from sports betting and a license fee of $12 million. According to industry insiders, the state authorities should consider allowing two skins per operator, which would further boost annual revenue. Currently, the bill allows for a single skin to be granted to each licensed operator.
New York Gambling Regulatory Authorities
The gambling activities conducted throughout New York are supervised by the New York State Gaming Commission. The regulatory body was established in 2013 and merged the New York State Racing and Wagering Board with the New York Lottery. The watchdog is responsible for issuing regulations that govern horse racing, casino gaming, state and charitable lotteries, and video lottery terminals.
The Commission can issue licenses and address civil enforcement matters, but criminal violations of the law are not within its remit. The regulator must report such infringements to other law enforcement agencies. On October 20, 2020, the Commission unanimously voted to permanently revoke the license of former racetrack groom Ramzan Antooa of Elmont, who was arrested on criminal charges.
The New York Gaming Facility Location Board is the authority responsible for selecting the locations for casinos.
Taxes on Gambling Winnings
If you reside in Nassau and win the lottery, you should know that your prize is taxable on both the state and federal levels. New York’s State Lottery agency will automatically deduct taxes from larger winnings. Lottery winners from Nassau can claim prizes of up to $600 simply by presenting their tickets to a lottery retailer. Prizes exceeding this amount can be claimed after the winner files the required form with the state.
Under federal law, the state of New York must report all lottery winnings above $600 to the Internal Revenue Service, and the state will automatically take its share from prizes of $5,000 or more. Winners residing in Nassau have to report lottery prizes as income regardless of the amount.
Prizes of $5,000 or more are taxed at a 24% rate. New York State also imposes a city tax whose rate depends on the winner’s city of residence. Lottery winners from New York can claim their prizes in lump sums or installments. In either case, taxes are withheld from the winnings when they are paid out.
Closing Thoughts
Nassau County’s gambling industry falls under the New York legal framework. As a result, Nassau players are restricted from enjoying a large number of gambling activities. Over the years, New York’s gambling laws have limited the pastime to casinos located on Indian reservations. The other lawful gambling option is betting on horse races.
For now, it seems that the authorities are poised to amend the state’s gambling framework and attract new revenue for both the state and the federal government. Their latest move was to enact NY State Senate Bill 17D and allow the seven casinos in the state to conduct virtual sports betting.
With regard to online gambling, operating a virtual casino within the state is illegal. However, the law does not explicitly state that New Yorkers are not allowed to place bets online. Consequently, many offshore virtual casinos accept players from New York.
Therefore, Nassau casino fans will not experience a shortage of gambling options. Nonetheless, the authorities in New York should consider amending the law to make the most of this gambling trend for the state.