Mobile sports betting is on its way to the Empire State.
During a 45-minute New York State Gaming Commission (NYSGC) regulatory meeting that was delayed for an hour Monday, it was announced the state has made its picks for mobile providers and operators.
They are: FanDuel New York, Bally Bet, BetMGM New York, DraftKings New York, Rush Street Interactive (parent company of BetRivers New York & PlaySugarHouse), Caesars, WynnBet, Resorts World and PointsBet New York.
Why New York Stands Out
New York is considered the crown jewel of states with legal NY online sports betting. It has the fourth-largest population at about 19.3 million. Unlike the state with the third-highest population, Florida (22 million), New York bettors can choose from among nine sportsbooks. In Florida, the only sportsbook available is run by the Seminole Tribe (Hard Rock Sportsbook) and the state is currently embroiled in legal challenges to its online sports betting plan.
California (39.6 million) and Texas (29.7 million) could be several years away from having legal online sports betting.
However, many obstacles continue to be an issue for providers and operators in New York. The 51% New York tax rate is the nation’s highest among legalized sports betting states and generating revenue will be extremely difficult for the platforms that were selected. New Hampshire is the only other state that charges 51%.
The 51% tax rate will be for 10 years.
Some Bids Did Not Make Cut
The other bids for New York sports betting apps, including bet365, FOX Bet, theScore (now owned by Penn National Gaming), Barstool Sportsbook (also owned by Penn National) and Fanatics, did not receive a license.
The New York Post reported last week that the Commission was expected to choose at least two groups to begin online sports betting — one the so-called “super group” with sportsbooks FanDuel, Bally’s, BetMGM NY, and DraftKings NY. That group also includes the Seneca Nation, the Buffalo Bills, the Buffalo Sabres, Major League Soccer’s NYCFC, the New York Yankees and the YES Network.
Both groups received the go-ahead.
NY Now Hopes Bettors Will Stay Home
With New Jersey, Pennsylvania and most recently Connecticut having retail and online sports betting, this gives New York a chance to keep its bettors from crossing state lines to place their wagers. And it keeps tax revenue at home.
Mobile sports betting platform provider promotions, which thrive in other states to attract new customers and retain current ones, will not be part of the plan in New York. Some current customers in neighboring states might just want to keep their accounts up-to-date and continue their betting patronage there.
Though the New York tax rate is high, having online sports betting is far better than limiting to the four retail sportsbooks at the upstate casinos.
Now that the providers are announced, the online market is working to launch before the 2022 Super Bowl at SoFi Stadium in Los Angeles on Feb. 13.