New York could be getting closer to NY online sports betting after a report Tuesday indicated that the New York State Gaming Commission has informed operators of the final tax rate they must meet.
This comes a day after New Jersey reported historic numbers in September sports betting handle and the same day that Connecticut launched mobile sports betting.
According to a tweet Tuesday by Buffalo News’ Albany Bureau Chief Tom Precious, state regulators have come up with a “final tax rate matrix” for the competing mobile sportsbook operators. A later tweet from Precious about the matrix seemed to indicate the tax rate would be 64%, by far the highest in any state.
The potential bidders have until 5 p.m. ET on Oct. 25 to amend their proposals if their initial plans don’t match the final tax rate levels. The state has until Dec. 6 or possibly earlier to make its selections on who receives mobile sports betting platform licenses.
That could allow the licenses to be issued at the next commission meeting, though no date has been set for the meeting, according to the commission’s website.
If a decision comes earlier than Dec. 6, it's possible the state could be up and running before the Super Bowl on Feb. 13.
I didn't want to share this earlier this AM because it hurt my eyes looking at it, but here is the "final tax rate matrix" that mobile sports betting bidders in NYS were told they had to meet. pic.twitter.com/P2LkZL4D0Z— Tom Precious (@TomPreciousALB) October 19, 2021
The Primary Applicants
There are six primary applicants in New York. One of the groups includes Bally’s, BetMGM NY, DraftKings NY and FanDuel NY. Other partners in that bid include the Seneca Nation, the Buffalo Bills, the Buffalo Sabres, Major League Soccer’s NYCFC, the New York Yankees and the YES Network.
A bid by platform provider Kambi includes Caesars Sportsbook, Resorts World Catskills, PointsBet, WynnBET and Rush Street Interactive which is BetRivers New York. Kambi also has a bid with Fanatics — led by former FanDuel CEO Matt King — with Penn National Gaming’s Barstool Sportsbook.
The remaining three bids are from bet365, FOX Bet and theScore.
The NYSGC will choose a minimum of two platform providers and four operators, but has the option to select more. The state is seeking at least 50% of gross gaming revenues from online sports betting, but would like to see that number go even higher.
September NY Retail Handle/Revenue
Sports betting handle for September at the state’s four upstate retail casinos was $17.35 million, up 89.6% from August’s $9.15 million.
New Jersey on Monday became the first state to top $1 billion ($1,011,114,311) in sports betting handle for a single month.
In New York, Rivers Casino in Schenectady led the four casino sportsbooks with $7.96 million in September sports betting handle, up from August’s $4.3 million. September revenue increased for all four casinos. They combined for $3.187 million, up 194.9% from August’s $1.08 million.
Rivers also had the highest revenue at $1.41 million, up from August’s $464,164.
The hope and goal is that mobile sports wagering could go live by early 2022 in the Empire State, just in time for the Super Bowl on Feb. 13 at SoFi Stadium in Los Angeles.