New York State Gambling Laws

The starting point for understanding casino gaming is the New York Constitution.

Article I, § 9 historically established a broad prohibition against gambling with specified exceptions. The 2013 amendment added an important exception allowing the Legislature to authorize casino gaming at no more than seven facilities.

This is significant because the commercial market ultimately derives its authority from the state constitution rather than simply from an ordinary licensing statute.

The Legislature can regulate the authorized market, but the constitutional provision places an overall limit on the number of commercial facilities.

Article 13 is the primary statutory framework for commercial casino gaming.

It governs matters ranging from license applications and investigations to casino operations, employee requirements, authorized games and advertising.

Under PML § 1301, an "authorized game" is generally a game that the Gaming Commission determines is compatible with the public interest and suitable for casino use.

This structure gives regulators flexibility to approve individual games rather than requiring lawmakers to pass a new statute every time a property wants to introduce a new variation of an existing casino product.

PML § 1335 establishes important restrictions concerning games and gaming equipment.

The statute makes clear that Article 13 does not authorize gaming outside authorized games conducted at a licensed facility in accordance with applicable regulations.

It also restricts where gaming equipment can be possessed, maintained or displayed within a licensed property.

This prevents the commercial licensing framework from functioning as a general authorization for slot machines, roulette wheels or other wagering equipment outside approved gaming environments.

The state's regulatory framework even restricts when certain gaming employees can gamble.

Under PML § 1336, casino key employees cannot wager at gaming facilities within the state. Other employees directly involved with gaming operations can also be prohibited from wagering at their workplace and certain affiliated properties.

For covered employees, the restriction continues for 30 days after leaving or being terminated from employment.

These rules are designed to protect game integrity and reduce potential conflicts involving individuals with inside knowledge of casino operations.

Casino advertising is regulated rather than left entirely to operators.

PML § 1363 establishes statutory restrictions involving advertising by gaming facility licensees.

Commission regulations under 9 NYCRR § 5325.6 add responsible gaming requirements. Casino advertisements must include an approved problem-gambling assistance message, and specific rules apply to how those messages appear in print, digital and other advertising.

Not every gambling activity is lawful simply because the state has legal casinos. Article 225 of the Penal Law contains the state's principal criminal gambling provisions.

Under Penal Law § 225.00, gambling generally involves risking something of value on a contest of chance or future contingent event with the understanding that something of value will be received following a particular outcome.

Importantly, the statute defines "unlawful" gambling as gambling that is not specifically authorized by law.

Article 225 contains offenses involving:

• Promoting unlawful gambling
• Gambling records
• Gambling devices
• Gaming fraud
• Counterfeit wagering instruments
• Unlawful gaming property
• Manipulating gaming outcomes
• Altering gaming equipment

More serious illegal gambling operations can carry felony penalties. For example, Penal Law § 225.10 classifies qualifying first-degree promotion of gambling as a Class E felony.

New York also specifically restricts unauthorized gambling devices.

Penal Law § 225.30 addresses manufacturing, selling, transporting, placing or possessing slot machines and other gambling devices under prohibited circumstances.

The statute includes exceptions, meaning possession is not unlawful in every conceivable situation. However, it prevents the existence of licensed casinos from being interpreted as general authorization for businesses or individuals to operate slot machines elsewhere.

Article 225 includes several provisions specifically designed to protect authorized gaming facilities from fraud and manipulation.

For example, § 225.85 makes intentional fraudulent use of unlawful gaming property at casino premises a Class E felony.

• 225.90 prohibits manipulating gaming outcomes through altered cards, dice, equipment, sleight of hand or other deceptive practices.
• 225.95 separately addresses manufacturing, distributing or modifying gaming equipment when it is intended to facilitate violations of the gambling statutes.