NY Regulator Attempts to Clear Up Sports Betting Questions

NY Regulator Attempts to Clear Up Sports Betting Questions

In an effort to provide some clarity on questions relating to the new mobile sports betting legislation in New York, the New York State Gaming Commission has provided a question-and-answer information sheet, broken down into 92 questions over six categories.

The categories posted on the commission’s website include: The Mobile Sports Wagering Platform Provider and Commercial Casino Relationship; The Request for Application Process; Tribal Gaming Considerations; Tax Rate and Fee Considerations; Licensing Matters; Mobile Sports Operation.

Questions were asked and answered by the state gaming commission and here are some of the key NY sportsbooks highlights.

Key Questions/Answers

Where will a platform provider server be located?

Each server is to be physically located upon the premises of a commercial casino. The commercial casino(s) that host servers will be at the discretion of the commission.

Will an operator be required to pay a licensing fee?


Will a platform provider be required to pay a licensing fee?

Pursuant to N.Y. Racing, Pari-Mutuel Wagering and Breeding Law, each platform provider is required to pay a one-time fee of $25 million.

We have read about mobile sports wagering being operated by the Division of Lottery, but cannot locate this language in the statute. Is the Lottery involved?

The Division of Lottery was used publicly as an example. The state uses vendors to off lottery games. Similarly, the state will license at least two platform providers to offer mobile sports wagering following a competitive bidding process.

Does the commission have a target timeframe in mind for when they would like mobile sports wagering to launch?

The commission has no preference but will seek to have the system operational as soon as practicable.

The proposal, which was included in the state budget for fiscal year 2022 when it passed on April 7, authorizes the state’s gaming commission to solicit bids from interested platforms (a minimum of two) and operators (a minimum of four). Platforms which opt to partner with a Native American tribe or nation will be given additional points in the bidding/scoring process.

The application process for providers should begin prior to July 1, with a 30-day period for applications to come in and a 150-day period to select a provider.

What is the role of a platform provider?

A platform provider must provide a system, that among other functionality, performs the acceptance and registration of all wagers; generation of all electronic wagering tickets; computation of wagering in the pool and payoffs; maintains records of all wagering activities; and generation of all reports required by the commission.

Bet365, BetRivers, DraftKings and FanDuel (sports wagering providers) have retail brick-and-mortar sportsbooks in the four upstate casinos (platforms).

Since four operators (above) are already partnered with commercial casinos, is there real opportunity for additional players?

Contracts between commercial casinos and operators of their in-house sports wagering will have no relevance to the RFA. The RFA is open to all qualified platform providers and operators, and awards will be made to the highest scoring applicants.



Lou Monaco had been East Coast Scene columnist for Gaming Today in Las Vegas since June 2019, covering the East Coast sportsbook scene with emphasis on NJ and PA. He also currently is a part-time writer for the high school sports department for NJ Advanced Media (NJ.com) in Iselin, NJ. Lou has over 30 years sports experience with previous stints at ESPN SportsTicker, Daily Racing Form and Oddschecker.

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