New York is the biggest sports betting market in the U.S. by a considerable margin. More than $16 billion in wagers have been placed on sports in the Empire State since the start of 2025 alone, close to double the total of the next-closest state.
As the market continues to grow in New York, not to mention the continuing efforts to legalize online casino and the plans for more land-based casinos in New York City, a prominent state senator wants to ensure insurance providers step up to the plate.
Sen. Joseph Addabbo filed Senate Bill S8352 this June, a measure that would mandate by law that insurance policies that provide medical or comprehensive coverage also cover outpatient services related to diagnosing and treating problem gambling. Addabbo’s bill would put gambling addiction on the same insurance footing as substance use disorder treatment, such as detoxification and rehabilitation.
“As we expand gaming in New York, whether it be mobile sports betting expansion or even the bigger step of iGaming, we have to realize that problem gaming becomes a more relevant issue, and so more individuals may be looking for help,” Addabbo told SBC Americas. “A New Yorker who has a severe addiction in gaming can’t pay for the treatment or therapy, they have to pay rent, mortgage, food, everything else.”
Why other things but problem gambling treatment?
In New York, the state Office of Addiction Services and Supports (OASAS) provides problem gambling treatment, overseeing more than 1,500 addiction prevention and treatment programs. It estimates that it serves nearly a quarter of a million New Yorkers per year through 12 treatment centers.
Since 2023, Medicaid has provided some level of reimbursement for gambling disorder treatments provided to New Yorkers who are admitted for gambling-only services through programs that have OASAS Gambling Designation. But state law does not mandate that insurance providers cover gambling treatment services as they do some other addiction treatments, unless the gambling problem is associated with a substance use disorder.
Addabbo sees no reason why gambling treatment should have to have other factors attached to it in order to qualify for insurance payouts.
“We talk about alcohol, opioids and others, but in terms of addiction, we should talk about problem gaming,” he stressed. “If other types of addictions and their treatments are covered, then parity-wise, we should consider problem gaming. It’s a form of addiction, it’s essentially a form of substance abuse for some.
“For an individual seeking help, we could save someone’s house and maybe even their life. The bottom line is, it should be covered.”
High on priority list
Addabbo’s bill, which had a counterpart filed in the Assembly this year, made no progress after being referred to the Senate Rules Committee. In other states, somewhat comparable measures made further progress. In Illinois, a bill add gambling disorders to that state’s Substance Use Disorder Act passed the Senate in April, although it did not make it over the line in the House.
Addabbo said he intends to discuss the proposal with insurance companies, which he suggested “don’t normally like” lawmakers’ attempts to expand coverage in New York, as well as speaking with Gov. Kathy Hochul’s office.
While he filed numerous pieces of gambling legislation this year, including his latest push to legalize online casino as well as the approved sweepstakes ban that is awaiting Hochul’s review, he said he is prepared to make the insurance bill one of his priority bills going into next year.
“I don’t see the downside,” he concluded. “If we’re doing the same thing for other addictions and abuses, why not problem gaming? Especially if we’re looking to expand gaming in New York. I think it’s a rational step. I don’t see how you can argue against this, and I look forward to that kind of debate next year.”
