New York Changes its Gaming Regulatory Structure

New York’s recent State Budget law changed the gaming regulatory structure in New York state moving forward. The new law, the relevant parts of which become effective on October 1, 2012, created the New York State Gaming Commission, a new agency which will take over the regulation and responsibilities for all forms of legalized in New York including Class III Indian Gaming, pari-mutual wagering(both on-track and off-track wagering), bingo and chartable games of chance, the lottery and prospective New York casinos.

Although the N.Y. Lottery will now be a division under the Gaming Commission, it will no longer be responsible for video lottery gaming. The formation of the Gaming Commission was also likely done in anticipation of the prospective change in the New York State Constitution which will make the legalization of casinos constitutional in New York,. Presently New York’s casinos are either Native American casinos or VLT facilities operated in conjunction with the NY Lottery.

The 7 member Gaming Commission will have the authority to issue and promulgate regulations with regards to licensing, registration, equipment testing and other regulatory functions customarily done by gaming regulatory agencies. The Gaming Commission should have sufficient lead time to organize and settle in prior to the prospective constitutional amendments becoming effective in a couple of years. Five of the seven members will be appointed by the Governor and the remaining two members by leaders in the Legislature.