However, regulation will also apply to the state's Indian-operated casinos, although mobile betting will still be prohibited at this point.
Despite the approval, the regulations will not be finalised until they have undergone a 60-day public comment period.
The Commission says casinos must have a sports wagering lounge in place to accept bets.
Last November, Bet365 partnered with Empire Resorts in a 20-year agreement, which will now see the online betting operator partner with Empire’s casino in upstate New York.
DraftKings also reached a sports betting licensing agreement with the del Lago Resort & Casino in New York last July.
