On Monday, the New York State Gaming Commission (NYSGC) recommended nine mobile sports betting operators for licensing in the Empire State.
Which bids won
The NYSGC has selected two winning bids which include a total of nine sportsbook operators. The superbid from Bally Bet, BetMGM, DraftKings and the primary applicant FanDuel was recommended by the Commission.
The other winning bid was the one led by B2B developer Kambi and a consortium of sportsbooks that include Caesars Sportsbook, PointsBet, Resorts World, Rush Street Interactive, and WynnBet.
The nine sportsbook operators will now be subject to a 51% tax on sports betting revenue and each license will last for 10 years, based on the tax rate.
The unsuccessful bids
The two successful bids managed to beat four other mobile sports betting proposals.
Kambi’s second bid with former FanDuel CEO Matt King’s new company Fanatics, and Penn National Gaming’s Barstool Sportsbook failed.
The online betting giant Bet365, theScore, and Fox Bet all submitted individual sports betting license bids, but these were unsuccessful.
Sports betting bids required a technical score of 60 out of 75 points based on a scoring system in the RFA to be considered as a qualified applicant.
Although Bet365’s bid had a high enough score to be considered for a license, the committee could not determine if Bet365’s inclusion would increase revenue to the state. If the NYSGC included Bet365, the tax rate would have been lowered to 50%.
When will New York’s mobile betting go live?
The Empire State could have its mobile sports betting market up and running in time for the Super Bowl. Each sportsbook operator can launch in their own time as long as they complete the necessary steps.
According to the timeline detailed in the RFA, which launched on 9 July 2021, the NYSGC had to select winning bids by 6 January 2022. However, now that the licenses are approved more than a month early, some operators could launch the market during the NFL Playoffs in January.
Although licenses have been approved, no operator can launch until the state’s mobile betting regulations are approved and printed in the state register.
Reactions from the winning bids
Following the news of the approved bids, most winners were quick to make celebrity announcements.
BetMGM CEO Adam Greenblatt said: “We’re pleased to share that BetMGM has been granted a license to operate mobile sports betting in New York, a state vital to ensuring nationwide leadership in sports betting and iGaming over time.
“We would like to thank the New York Gaming Commission as well as congratulate them for keeping to their timetable. New York has the potential to be one of the largest sports betting markets in the US.”
Caesars CEO Tom Reeg said: “We’ve been looking forward to the opportunity to bring mobile sports betting to New York. With more than 19 million people, New York will be the biggest mobile sports betting market in the country, and we feel we are uniquely positioned to bring an incredible product to that market.”
Bally’s Chairman Soo Kim added: “This license advances our overall market footprint and marks the latest milestone on our journey towards becoming the leading omni-channel gaming provider in the US. Above all, we look forward to providing New York’s devoted fan base with engaging, best-in-class, sports betting experiences.”