Casino Expansion in New York Raises Alarms Over Gambling Addiction
New York’s green light for three city casinos has intensified debate over rising problem gambling.
LISTEN TO THIS ARTICLE:After a December vote by the New York State Gaming Commission that finalized three casino projects for New York City, public-health officials and community groups are warning of a surge in gambling-related harm. Lawmakers and researchers point to a series of trends that have accelerated since sports betting was legalized in 2017, including a sharp rise in reported problem gambling and a boom in mobile wagering.
National and state data show a noticeable increase: estimates now place roughly 4.3% of New Yorkers experiencing gambling problems, up from 0.7% in 2020. Advocates note that the landscape changed dramatically after 2017, when the state opened the door to regulated sports betting; at the time researchers reported a roughly 37% increase in individuals identifying as problem gamblers, outpacing a 23% rise nationally. New York’s mobile sports-betting market has been a major driver – operators handled more than $60 billion in wagers through January 2025 – raising concerns that physical casinos will compound exposure and access.
Studies of gambling behavior suggest proximity matters. Brick-and-mortar venues increase visibility and accessibility, and that increased contact correlates with higher participation and, in some communities, more severe losses. Problem gambling often co-occurs with other mental-health conditions; clinicians say that untreated gambling disorder can contribute to family breakdown, financial collapse, and elevated suicide risk, particularly in neighborhoods already grappling with poverty and housing instability.
Professor Mark D. Griffiths, a long-time researcher in gambling studies, said: "The empirical evidence is clear that increased opportunity drives increased participation. When you reduce friction – through mobile apps, advertising, or a casino on the next block – you increase the number of vulnerable people who move from casual play to problematic behavior. Public policy has to anticipate that effect and fund services accordingly."
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Responsibility for preventing and treating gambling harm in New York is distributed across private operators, regulators and under-resourced public health agencies. Casinos are contractually obliged to intervene in certain situations and to fund some mitigation measures, but state agencies say those requirements have not kept pace with rising demand for treatment. The state currently allocates about $6 million a year from sports-betting receipts to gambling addiction services – an amount that officials and providers describe as inadequate.
Senator Joseph P. Addabbo Jr., who has been vocal on the issue of gaming-related harm, urged a broader policy response. He said: "We cannot rely on goodwill alone. We need expanded prevention programs, stronger education campaigns, and streamlined pathways into clinical care. Equally important is ensuring insurance covers outpatient treatment for gambling disorder so people can access help without catastrophic cost. Failure to act now will saddle cities and counties with greater social and economic costs down the road."
Policymakers are weighing several options: boosting state funding for treatment, requiring operators to contribute a larger share to prevention and research, tighter limits on advertising and product design, and greater data sharing between operators and public-health agencies to identify at-risk players earlier. The New York State Gaming Commission is expected to monitor operator compliance closely as projects move from planning into operation.
What Operators and Communities Need to Consider
For industry and civic leaders, the task is pragmatic: balance the economic benefits of new casino development – job creation, tourism and tax revenue – against a measurable rise in harm. Community-based services, workplace training for recognizing problem gambling, and municipal planning to mitigate clustering of venues are practical steps that can reduce secondary harms.
As New York moves forward with its largest expansion of in-person gaming in decades, the debate will hinge on whether regulators and operators invest sufficiently in prevention, treatment and research to protect the most vulnerable residents while capturing economic gains.
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