New York Bill Aims To Cover Problem Gambling Treatment With Insurance

On Wednesday, Senator Joseph Addabbo introduced a pivotal companion bill in the New York Senate, aimed at mandating insurance providers to cover the diagnosis and treatment of problem gambling. Currently, the treatment of problem gambling is excluded from medical insurance coverage unless it correlates with a substance use disorder. Senate Bill S8352 seeks to rectify this inequity, aligning problem gambling treatment with that of other addiction forms, such as those related to drugs or alcohol.

This legislation proposes that patients receive coverage for treatment through the New York State Office of Addiction Services and Supports (OASAS), which oversees over 1,500 addiction prevention and treatment programs, catering to more than 730,000 individuals each year across 12 centers.

In parallel, Assemblymember Phil Steck introduced Assembly Bill A8518 in May, echoing this initiative to reform insurance policies. This bill is currently under review by the Assembly’s Standing Committee on Insurance.

Anticipating an Increase in Problem Gamblers

The bill’s preamble articulates the urgency of its introduction: “As we continue to expand gambling opportunities, we should anticipate an influx of New Yorkers seeking support for problem gambling.” It emphasizes the glaring inadequacy of existing laws, which do not compel insurers to provide treatment coverage from OASAS-certified programs unless accompanied by a substance use disorder.

This legislative change is critical, as many affected individuals currently struggle to access the necessary support. The landscape of gambling in New York is rapidly shifting; the state stands as the largest sports betting market in the nation, with residents wagering an impressive $22.6 billion in 2024 alone. Licensed sportsbooks within the state recorded over $2 billion in revenue, contributing more than $1 billion to state coffers due to a hefty 51% tax rate.

Alarmingly, it’s estimated that approximately 600,000 New Yorkers grapple with gambling-related issues. Nationally, about 4.4% of the adult population is at risk for gambling problems, while 0.7% are classified as problem or pathological gamblers. In fact, online searches related to gambling addiction in New York have surged by 37% since the advent of online sportsbooks in 2021.

Growth of Casino Gaming in New York

Senator Addabbo has also proposed a ban on unregulated sweepstakes casinos in New York, prompting several operators—including VGW, High 5, Zula, Fortune Coins, and McLuck—to cease operations in the state. As the bill enters its critical third reading, it races against the legislative clock to be passed before the session concludes on June 12. Recent amendments have granted the New York State Gaming Commission the authority to define what constitutes a dual-currency system.

Moreover, unregulated online casinos in New York are estimated to have generated over $4 billion in revenue last year, surpassing the historic figures seen in the state’s licensed sportsbook market. The Empire State is actively inviting proposals for new land-based casino projects, with a submission deadline set for June 27. Successful applicants will be awarded licenses by the Gaming Facility Location Board by year’s end.

Noteworthy proposals include an ambitious $8 billion gaming complex adjacent to Citi Field in Queens, a $3 billion development in Coney Island, and a sprawling 3.1 million-square-foot resort project in the Bronx, along with an expansion of Resorts World New York City.

As these new casino developments emerge, lawmakers are prioritizing the establishment of programs designed to support expected increases in problem gambling. Addressing this potential public health concern within the evolving gambling landscape is essential for fostering a responsible gaming environment.

For industry stakeholders, staying informed and proactive about these changing dynamics is crucial. The integration of supportive legislation is a necessary step toward ensuring that the benefits of the gambling industry are not overshadowed by the challenges faced by vulnerable populations.