New York Gov. Kathy Hochul Wants Health Insurance to Cover Gambling Problems
Posted on: January 20, 2026, 10:54h.
Last updated on: January 20, 2026, 11:26h.
- NY Gov. Kathy Hochul wants health insurance companies to pay for problem gambling treatment
- No state benefits more from online sports betting in terms of tax revenue than New York
New York Gov. Kathy Hochul (D) begins her fifth full year in office with a commitment to cracking down on rising problem gambling rates in the Empire State.
New York is already one of the richest gaming states, with annual commercial revenue from casinos, video lottery gaming, and sports betting exceeding $5 billion. The industry is expected to only grow in the coming years as three full-scale, Las Vegas-like casino destinations come to the downstate area.
In anticipation of more slot machines and table games, Hochul has made it a priority of her 2026 agenda to better treat compulsive gambling. In part of her “Building Resilient Communities for New Yorkers,” the governor pledges to strengthen prevention, treatment, and harm reduction for problem gambling.
Health Insurers Pay for Treatment
Hochul’s 2026 agenda claims it will use “evidence-based practices and supports” to develop a “data-driven” approach to help lessen societal strains caused by New York’s continually expanding gambling industry.
New York legalized four upstate and three downstate casinos in 2011. The state added online sports betting in 2022. New York benefits greatly from its legal gambling market. In 2024, the state’s tax benefit from casinos, VLTs, and sports betting was nearly $2.3 billion. No state benefits more from online sports betting than does New York.
The more than $5.17 billion that the gaming interests won from bettors, however, took money out of consumers’ pockets. Many lost more than they could afford, leading to financial difficulties, strained relationships, substance abuse issues, and mental health crises.
Hochul wants health insurance companies to foot the bill to help problem gamblers.
The governor wishes to ‘advance legislation to ensure treatment for addiction disorders is covered by insurance.’ Hochul’s agenda adds, ‘By investing in evidence-based practices to prevent and treat gambling addiction, the Governor will make sure gambling’s growth doesn’t come at New Yorkers’ expense.’
New York is the most-visited state in the country, with almost 10 million annual visitors. The International Trade Administration says New York City is the most visited city, with 2024 visitors totaling over 9.5 million people. Florida and Miami were second in state and city visitation.
Other Gaming Initiatives
Along with ensuring that health insurers provide problem gambling treatment, Hochul is focused on limiting betting platforms’ ability to use AI-powered services to “exploit consumers’ gambling habits” through tailored promotions and incentives. The Democrat wants to also direct the New York State Gaming Commission to issue guidance on how technological innovations might assist in identifying and proactively helping problem gamblers.
Finally, Hochul wants the state gaming commission to “explore effective ways” to ensure that young people not legally allowed to bet on sports are not cheating the regulatory system by downloading offshore betting apps or using the accounts of others.
“These actions will protect young people from the harms of online betting, which include significant financial loss and addictive behavior,” the governor’s office concluded.
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