Mobile sports betting in New York could be on its way to become reality sooner than expected, say various reports from the state. The New York State Gaming Commission is rumored to be awarding a total of nine online sports betting licenses to two gaming consortiums consisting of the biggest names from the gambling industry.
The Empire State’s legislature has decided to introduce online sports betting as a way of providing more revenue for the local budget as well as provide gamblers with a long-awaited service. Now, the state’s gaming commission is tasked with assessing proposals and awarding licenses from gaming entities that want to be a part of the new online regime.
Two Winning Bids
According to the latest reports emerging from the state, the two winning bids could be awarded to two joint proposals from the industry’s leaders. The first super bid includes prominent names such as FanDuel, DraftKings, BetMGM, and Bally Bet. Then, the second consortium that can land a license is the one led by Kambi, which is a B2B platform provider of sports betting technology.
The second bid which is headed by Kambi, also states five operators in its proposal, which are Rush Street Interactive, Caesars Entertainment, PointsBet, Wynn Resorts, and Genting Americas. The reports surfaced on Tuesday, and according to the new information, the gaming commission is on track to launch mobile sports betting before the next Super Bowl in February.
The rumored earlier announcement of the selected operators would come as great news, as the commission previously set a tentative date to announce its decision in December. State Sen. Joseph Addabbo Jr. said that if the reports are true, this would be tremendous news for the state, which will be able to realize more revenue and invest it in the local economy long before the Super Bowl.
Brendan Bussmann, who is a partner at gaming consultancy Global Market Advisors, said that the state would only benefit from more brands involved in mobile sports betting. According to him, this would provide an open market, with even more revenue and innovation. He also says that the New Hampshire model should have never been implemented in NYS but unfortunately, it was.
Final Tax Rate Confirmed
Previously, the New York State Gaming Commission announced a final tax matrix for its applicants who submitted proposals to join the state’s online sports betting regime. Under the final matrix, the state would require applicants to be taxed higher at 64% if the commission selects two platform providers and four gaming operators. However, the tax rate could lower to 51% if the regulator decides on a total of nine operators.
Drop in Sports Betting Volume
The earlier introduction of mobile sports betting to the Empire State could come as great news, as previously, the commission reported a drop in sports betting volume. According to the regulator, for the month of July, the state’s four commercial casinos generated US$1.3 million in sports wagers. This is 31.6% less than June’s record, and also it is the second-lowest month amount for 2021.
Source: Rybaltowski, Matt “Sources: ‘Super Bid’ And One Other Will Win Coveted NY Mobile Sports Betting Approvals”, Sports Handle, November 2, 2021