New York bill seeks to mandate insurance coverage for problem gambling treatment

New York lawmakers are considering new legislation that would require insurance providers to cover outpatient treatment for problem gambling, a potential shift in how the state addresses gambling-related harm.

Senate Bill S8352, introduced by State Senator Joseph Addabbo on June 4, proposes amending existing insurance laws to mandate that policies offering medical or comprehensive coverage include services for diagnosing and treating problem gambling. 

The bill places problem gambling treatment alongside existing provisions for substance use disorder care, such as detoxification and rehabilitation services. The legislation comes as the state’s gaming sector continues to expand, prompting concerns about a likely rise in individuals experiencing gambling-related issues. 

Under current law, New York insurance providers are not obligated to cover problem gambling treatment unless it is associated with a substance use disorder. This has limited access to care offered by the New York State Office of Addiction Services and Supports (OASAS), which oversees a statewide network of more than 1,500 treatment and prevention programs.

In a sponsor memo accompanying the bill, Addabbo noted: “As we continue to expand gambling opportunities, we should expect an increase in New Yorkers seeking help for problem gambling.” He added that the current lack of required insurance coverage prevents many individuals from accessing the necessary support.

The bill has been referred to the Senate Rules Committee. A companion bill, Assembly Bill A8518, introduced by Assemblymember Phil Steck in May, mirrors the Senate version and is currently under review by the Assembly’s Standing Committee on Insurance.

Addabbo has been active in advancing multiple pieces of gaming-related legislation this session. Earlier this year, he introduced a measure to ban online sweepstakes casinos in New York, targeting operators and affiliates that profit from such games. He has also proposed a separate bill aimed at legalizing online casinos and iLottery services in the state.

New York’s push to include problem gambling under mandatory insurance coverage follows similar legislative pushes in other states. In Illinois, lawmakers advanced Senate Bill 118 earlier this year, expanding the state’s Substance Use Disorder Act to include gambling disorders. That measure passed the Illinois Senate and is now pending final approval in the House.

If passed, Addabbo’s legislation would apply to all relevant insurance policies issued, renewed, or modified after the law takes effect. It would extend coverage requirements to include services provided by certified treatment programs and ensure that restrictions on problem gambling care are not more stringent than those applied to general medical or surgical services.