Behind the Scenes: How New York's Casinos Are Regulated

All legal gambling is regulated at a state level. Most high rollers and frequent casino goers are probably well aware of this. Whether you're most interested in sports betting or in horse racing, whether you're into slots or table games, all of these games are regulated. The US is a tricky situation because every state comes with different regulations and laws. Some states are more tolerant of gambling, while others are highly regulated. For those located in New York, most gambling was historically limited to casinos located on Indian reservations, which allowed betting on horse racing. However, times are changing, and back in 2013 an amendment to the New York Constitution was approved. This amendment allows Las Vegas-style casinos within the state, and everything changed forever. This law allowed for up to seven new casinos to be permitted in New York State, along with five Indian casinos upstate.

Tribal Gambling

New York currently has three tribes with compacts. These tribes are the Seneca Nation of Indians, the Oneida Indian Nation of New York, and the St. Regis Mohawk Tribe. These tribal gaming commissions are responsible for all onsite regulations along with the control and security of their gaming operations. That means the New York Gaming Enforcement Division has limited authority to monitor and inspect the gaming operations to ensure that the facility is operating in compliance with the applicable regulations. The Oneida Nation and the St. Regis Mohawk Tribe compacts contain no limit on gaming venues and allow the tribes to operate an unlimited number of gaming machines. The Seneca Nation allows up to three gaming venues, with an unlimited number of machines. The Oneida Nation and St. Regis Mohawk compacts remain in effect until a written agreement of both parties terminates it.

Racebooks and Lottery

Commercial gaming is different. The Division of Gaming Enforcement oversees the licensing procedure for New York racetracks that also offer video lottery gaming. To continue to hold their license, they need to comply with all state and local fire and safety codes. New York has a unique setup in this regard; unlike most commercial gaming states, video lottery gaming agents are not required to pay any annual fees to operate the VLTs. All costs for applications, licensing, and renewals are paid for under revenue generated from the VLT facilities.

Casinos

For commercial casinos, the New York State Gaming Commission oversees every aspect of the licensing procedure for New York commercial casino gaming facilities. So when a land-based casino wants to operate legally, they need to pay initial licensing fees. These fees range from $20 million to $50 million. They also pay an annual fee of $500 for every gaming device and table offered.