Share 
Bonus TL;DR
- Democratic Gov. Kathy Hochul defeated Republican Bruce Blakeman in New York’s gubernatorial election, according to the Associated Press, leaving online casino legalization unresolved.
- Hochul’s win keeps in office the administration behind New York’s July lawsuit against Kalshi and the December 2025 sweepstakes casino ban.
Democratic Gov. Kathy Hochul defeated Republican Bruce Blakeman in New York’s gubernatorial election, according to the Associated Press.
The result leaves online casino legalization unresolved, keeps the state’s legal challenge to Kalshi’s event contracts with the same administration, and maintains New York’s sweepstakes casino ban, Covers reported.
Online casino legislation still needs Hochul’s backing
Online casino supporters still need Hochul’s support after repeated legislative setbacks, according to Covers. Hochul has not committed to signing online casino legislation.
State Sen. Joseph Addabbo Jr. has championed proposals to allow online casino games and internet lottery sales. Those efforts have not been approved, and concerns about gambling addiction and competition with existing casinos have complicated the push.
Labor interests representing casino workers opposed expansion. They raised concerns that online gambling would reduce visits to physical properties and threaten jobs.
An earlier Addabbo proposal would have given sportsbooks, commercial casinos and tribal operators access to New York online casino licenses. It also included customer deposit notifications and a tax rate below New York’s levy on mobile sports betting.
New York already has an established mobile sports betting market and has approved three downstate casino projects.
Kalshi lawsuit and sweepstakes ban remain in place
Hochul and Attorney General Letitia James announced a lawsuit in July alleging that Kalshi operated an unlicensed gambling business. The state is seeking to block Kalshi’s event contracts and impose financial penalties.
Kalshi maintains that its contracts fall under federal regulation and outside the jurisdiction of state gambling authorities. The dispute extends beyond sports to contracts tied to elections, culture, and other events.
Blakeman criticized Hochul’s handling of Kalshi and questioned her rejection of a potential revenue agreement, according to Covers.
Hochul signed New York’s sweepstakes casino ban in December 2025. The action restricts another online gambling model without authorizing a replacement market for regulated online slots or table games.
For gaming companies, Covers wrote, the election result keeps in office an administration willing to support licensed casino development while challenging products it considers unauthorized.
If you or someone you know has a gambling problem, call 1-800-GAMBLER.
More from bonus.com – Kalshi, Housing Works Announce $3 Million New York Partnership – Resorts World New York City Awards $670,000 in Grants to Local Queens Nonprofits in Celebration of 15th Anniversary – Kalshi and S&P Dow Jones Indices Partner to Develop the Next Generation of Financial Markets
Source: As reported by Covers.
