However, there is little confidence the bill will be written into law by the end of the state’s legislative session on Wednesday.
The bill, sponsored by Senator Joseph Addabbo Jr., will also allow in-stadium wagering at venues containing at least 15,000 seats.
It was passed with 57 votes in favour, while only five voted against. But Governor Andrew Cuomo's unwavering stance suggests mobile sports betting within New York is still unlikely in the near future.
The State Assembly does not automatically have to put the bill to a vote and the Washington Post suggests there is a "stalemate among top Democrats."
Assembly Speaker Carl Heastie is reported to have sided with Governor Cuomo in believing mobile wagering may be unconstitutional.
Changing the constitution would require a three-year long process.