The New York State Gaming Commission (NYSGC) unanimously approved Monday, August 16 the proposed mobile sports betting regulations announced on July, thus taking a key step in the implementation of online sports wagering in the state.
The regulations were first presented on July 9, along with a request for application (RFA) for potential license holders, and contain provisions on general requirements in areas including accounting and financial records, integrity and anti-money laundering.
The commission now must move forward with the selection of a minimum of two mobile sports wagering providers and two mobile sports wagering operators.
Bids were disclosed Monday, August 9, seeing some of the U.S. top sportsbooks teaming together in conjoined bills, which could result in several brands entering the market.
One of the bids includes market leaders FanDuel, DraftKings, BetMGM and Bally, which combined make up the majority of the U.S. sports betting segment. A second bid also brings together a number of brands: Caesars, Resorts World, PointsBet, BetRivers and WynnBet. Also as a conjoined bid are Barstool Sportsbook and Fanatics Sportsbook.
On the solo bids: European gaming company bet365, the Canadian sportsbook theScore and FOX Bet.
Oral presentations are set to start on September 1, and the NYS Gaming Commission is expected to select finalists by December 6, and then give applicants a week to submit a final application. It is expected that the platforms will count with sufficient weeks to launch mobile sports betting in time for the 2022 Super Bowl LVI.
Gambling in New York has maintained strong numbers throughout the year, with sportsbooks reaching a combined $1.9 million revenue in June. But mobile sports betting could further improve said figures, as surveys show that at least 30% of sports fans in the state are willing to place daily wagers once this modality is live.
This is also good news in terms of taxation for New York City, as applicants earn extra points in the selection process by agreeing to a 50% tax or more on gross gaming revenue, which could potentially turn the state into the one with the highest rate in the country (New Hampshire’s tax rate is at 51%).
According to a January study by Spectrum Gaming Group for the Gaming Commission, it is estimated that New York’s digital market could potentially generate up to $856 million in gross revenue, with the administration expecting to receive about $49 million in tax revenue in 2022 and $357 million the following year.