New York online sports betting took a big step forward today as the New York Gaming Commission awarded online sports betting licenses to nine operators.
The commission today awarded 10-year online sports betting licenses to FanDuel, DraftKings, Bally Bet, BetMGM, Kambi, WynnBet, Caesars, PointsBet, Empire Resorts and Rush Street Interactive, paving the way for online sports betting to begin in February of 2022 in time for Super Bowl LVI.
It was a long time coming for the state, as former Gov. Andrew Cuomo included online sports betting in the fiscal year 2022 executive budget approved this past April.
The gaming commission was obligated to name a minimum of at least two platform providers (the technology the online sports betting program will use) and four platform operators (the forward-facing skins for customers) from six submitted bids. Commission members unanimously approved FanDuel Sportsbook, DraftKings, BetMGM, Bally Bet, Kambi, Caesars, Wynn Interactive and PointsBet as online sports betting providers and FanDuel, DraftKings, BetMGM, Bally Bet, Caesars, Wynn Interactive, PointsBet, Rush Street Interactive and Resorts World as online sports betting operators.
The final tax rate for online sports betting will be 51%.
“New York has the potential to be one of the largest sports betting markets in the U.S. and BetMGM is particularly well positioned to become a leader in the state given the strength of the M life customer database, close proximity of Empire City Casino to support our omni-channel strategy, and parlaying our already leading positions in nearby states,” said Adam Greenblatt, CEO, of BetMGM in a release.”
Six groups bid for online sports betting rights and submitted applications this past August. The gaming commission noted the group of Kambi, Caesars, Wynn Interactive and PointsBet was the highest rated applicant. The group proposed a 64% tax rate, which the other groups had to match to be considered as license finalists. Two additional groups matched the tax rate.
As it was determined to be in the best interest of the state, the gaming commission also accepted the FanDuel, DraftKings, BetMGM and Bally Bet group, effectively lowering the overall tax rate to 51%, set forth by the final tax rate matrix created by the commission.
Bet365 was the only qualified finalist not selected by the Gaming Commission.
Left out of New York online sports betting is Bet365, Penn National Gaming (Barstool Sportsbook), Fanatics Gaming, FOX Bet and theScore, which all submitted bids for sports betting rights in the state.
Robert Linnehan is a sports betting regulatory writer covering developments in online gambling for XL Media PLC. For more developments on New York online sports betting, follow him on Twitter: @RLinnehanXL