Four days after releasing specific licensing instructions for applicants, the New York State Gaming Commission (NYSGC) announced Monday the second round of questions and answers from potential online NY sports betting providers.
This will be the last round of Q&A for applicants as all applications are due on Monday, Aug. 9.
On July 22, the NYSGC released a 29-page question and answer document to applicants’ first questions, as the application process for mobile sports betting platforms began on July 9.
Six days after that document was released, the state issued licensing instructions for applicants to follow.
One key highlight of the latest 16-page document, posted on the commission’s website and supplementing the first round, has to do with evaluation criteria among applicants. Here is this round of questions:
Q: Please clarify the pricing factor tiers in the tax matrix. The ranges at the break points lack clarity. The 40-50% tax bucket says up to 15 points are awardable. The 50% tax bucket says up to 20 points are available. This seems to imply the possibility that 49.99% could get only 15 points, but 50.00% could get 20 points.
A: A higher point value will be awarded for meeting the 50% threshold and, therefore will be awarded a higher value than an application with a rate of 49.99%. A rate of 50% will receive exactly 20 points.
Proposed tax rate on Mobile Sports Wagering Gross Gaming Revenue:
- 12.5 percent up to 30 percent - up to 3 Points
- 30 percent up to 40 percent - up to 10 Points
- 40 percent up to 50 percent - up to 15 Points
- 50 percent - 20 Points
Note: An Applicant will be awarded an additional point for each full percentage point over 50 percent.
Q: Is it possible for an applicant to receive the full bonus points under this part if they do not have an agreement with all Nations or Tribes that are parties to compacts with the state or is the determining factor the overall “perceived value” of the agreement(s) as opposed to simply having an agreement with every Nation or Tribe?
A: Both are determining factors that need to be satisfied to receive the full Bonus Points.
Q: A proposed tax rate of 49.9% would receive under 15 points, a proposed tax rate of 50% would receive exactly 15 points, and a proposed tax rate of 51% would receive 16 points (and 52% would receive 17 points, up to a maximum of 20 points at 55 percent); or a different interpretation?
A: A proposed tax rate of 49.9% would receive 15 points, a proposed tax rate of 50% would receive 20 points, and a proposed tax rate of 51% would receive 21 points, and each additional full percentage point above that would increase the score by an additional point with no limit.
Q: Can the Commission clarify that to be eligible for the Native American Agreement Bonus an applicant is not required to have an agreement with every Tribe in the State?
A: Correct; however, agreements with multiple tribes will increase the points awarded. According to the Commission, several questions submitted in Round 2 were addressed in Round 1. Those Q/A were not replicated in today’s document release.
New York Wagering Survey
A study released this week by EmpireStakes.com showed that of New York adults surveyed, more than one in four of those seen as sports fans expect to place wagers daily when the market launches.
The figure is even higher among sports bettors, as one in three will wager daily, the survey shows. Nearly half (44%) of sports bettors plan to wager at least once a week.
June Betting Revenue Up
New York’s four commercial casinos continued the recent trend of seeing increased June sports betting revenue.
Tioga Downs in Nichols, Del Lago in Waterloo, Rivers in Schenectady and Resorts World Catskills in Monticello combined for nearly $1.9 million ($1,858,642) in sports betting revenue for June, up 16.9% from May, according to figures released last week by the gaming commission.
It’s the second month-to-month increase in sports betting. The state saw a 20.2% increase from April to May. New York does not release monthly handle figures, just revenue.
NY online casinos have not been legalized by the state.