Sen. Joseph Addabbo introduced a companion bill in the New York Senate on Wednesday that would force insurers to cover the cost of diagnosing and treating problem gambling.
At the moment, problem gambling is not covered by medical insurance unless it is associated with a substance use disorder. However, Senate Bill S8352 looks to change that and bring problem gambling treatment in line with other addiction treatment, such as drugs or alcohol.
The bill would give patients coverage for seeking help through the New York State Office of Addiction Services and Supports (OASAS). The organization runs more than 1,500 addiction prevention and treatment programs, serving over 730,000 people annually across 12 treatment centers.
Assemblymember Phil Steck introduced Assembly Bill A8518 in May, which proposes the same change in insurance policies. The bill is currently under consideration in the Assembly’s Standing Committee on Insurance.
Increase in problem gamblers expected
The bill states its purpose, “As we continue to expand gambling opportunities, we should expect an increase in New Yorkers seeking help for problem gambling.
“Current law does not require insurers to cover problem gambling treatment provided by OASAS certified treatment programs unless the person also has an associated substance use disorder. Thus, the network of providers best able to address the issue are not able to do so. Without this change, many in need of help will be unable to find it.”
New York sports betting is the largest market in the country, with residents betting a record $22.6 billion in 2024. Licensed sportsbooks in the state generated over $2 billion in revenue. At a tax rate of 51%, this led to over $1 billion going towards the state.
It is estimated that approximately 600,000 New Yorkers have gambling problems. Across the US, around 4.4% of the adult population are at risk of a gambling problem, with 0.7% identified as problem or pathological gamblers.
In New York, online searches related to gambling addiction have risen by 37% since the introduction of online sportsbooks in 2021.
Casino gaming growing in NY
Sen. Addabbo has also proposed a ban on sweepstakes casinos in New York. As a result, many operators have already exited the state, including VGW, High 5, Zula, Fortune Coins, and McLuck.
The bill is now in its third reading, but faces a race against time to be passed before the legislative session ends on June 12. It was amended last month to give the New York State Gaming Commission control over what is defined as a dual-currency system.
Unregulated New York online casinos are estimated to have generated over $4 billion in revenue last year, more than double the record numbers of the state’s licensed sportsbooks.
The Empire State is also taking applications for land-based casino projects. The deadline for the submission of proposals is June 27, and the Gaming Facility Location Board will grant licenses to successful applicants by the end of the year.
Notable submissions include an $8 billion complex adjacent to Citi Field in Queens, a $3 billion Coney Island development, a 3.1 million-square-foot resort in the Bronx, as well as the expansion of Resorts World New York City.
With the casino developments, lawmakers are keen to put in place programs to assist the inevitable rise in problem gamblers.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
