New York is getting ready to join the neighboring states – New Jersey and Pennsylvania where mobile sports betting is legal. On Wednesday, Gov. Andrew Cuomo and legislative leaders announced agreement on NY’s new state budget which includes measures on legal mobile sports betting.
New York state officials are hoping to launch mobile sports wagering ahead of the 2021 football season. As per the agreement, the New York Lottery would issue requests for proposals from two mobile betting operators and then subcontract licenses to four sportsbook operators. The New York State Gaming Commission will determine which sportsbooks enter the market.
New York approves Legal Online Sports Betting
The New York state budget for the FY 2022 contains full of progressive ideas focusing to bounce back the revenue shortfall in the year 2020-21. The new bill includes a great news for NY bettors, which is the Governor and lawmakers have agreed to reach a deal to legalize mobile sports betting.
The New York State Gaming Commission will open the applications to all online operators by July 1, 2021. Applicants must submit their application within 30 days. NYGC will announce the winners within 150 days after final applications are submitted.
Once the New York Gaming Commission pick the two winning platforms, they would have a wide-range of possible options. They could include winning bids from any of the state’s commercial casinos, native American gaming tribes, racetrack/casino facilities, independent sportsbook operator, or technology companies.
According to Gov. Andrew Cuomo, NY mobile betting market’s sole priority is to generate maximum revenue and contribute to the state. Hence, operators that agree to the high tax rate will definitely have a huge edge in the bidding process.
The proposed model will certainly benefit the four existing upstate casino sportsbook partners: FanDuel, BetRivers, bet365, DraftKings. However, it is unclear if other gaming entities like tribes, racinos, and other online sportsbooks have any chance. Surprisingly, Sen. Joseph Addabbo said, New York’s online sports betting model could change in early 2022 if it doesn’t meet expectations.
New York Mobile Sports Betting Structure
Here are the main details of New York mobile sports betting agreement:
- The New York State Lottery will oversee mobile sports betting.
- Mobile sports betting partners must pay $25 million for a 10-year licensing agreement.
- Gov. Cuomo expects operators to share about 51% tax on gross gaming revenue and projects $500 million in annual tax revenues.
- Program will provide $5 million every year to youth sports and $6 million to combat problem gambling. The remaining new revenue goes to education.
- From the list of requested proposals, the New York State Gaming Commission will announce two winning platform providers and they associate with at least four total sportsbook brands.
It is too early to say which entities will earn the platform provider licensees. However, specialists predict that the two highest-grossing sportsbooks in the US – FanDuel and DraftKings have an early edge in the bidding process.