Though New York does not yet offer the ability to bet online legally, like neighboring states New Jersey and Pennsylvania, both of which were quick to enter the space, we now have much more clarity.
In April 2021, the New York legislature agreed to a $212 billion state budget that includes an online betting plan. Interestingly, it closely resembles a vision promoted by Gov. Andrew Cuomo throughout negotiations.
New York lawmakers have cited the 2022 Super Bowl as an early benchmark of when online wagering could launch in the state.
In terms of Cuomo’s “vision,” the state will issue application requests by July 1, and interested parties will enter into a competitive bidding process.
The New York Gaming Commission will consider potential platform providers’ gross revenue estimates, the tax rate it’s willing to pay the state (a bidding war), past experience in the field, a timeline of its potential operations, and its willingness to enter into revenue-sharing agreements with the state’s Native American tribes or nations.
Despite a minimum set 13% tax rate for providers, this will likely be driven much higher during the bidding process. Per previous reports, Cuomo expects nearly a 50% to 55% tax rate, which would be dramatically higher than New Jersey (13%) and even the high tax rate charged to operators in Pennsylvania (36%). It’s a “Choose Your Own Tax Rate” bidding process.
The state will have 150 days after receiving applications to select two platform providers. The selected platform providers will each pay the state a one-time fee of $25 million to host sports betting. Platform provider servers to host sports betting programs will be housed in a New York casino. Providers will pay casinos $5 million annually to house their mobile betting servers.
With mobile sports betting legalized in New Jersey and Pennsylvania, New York State is currently losing out on potential revenue as bettors travel across state lines to place their wagers. Not to mention, those who aren’t close enough to state lines to hop the border might turn to illegal offshore books.
New York online sports betting felt inevitable for quite some time, but the light at the end of the tunnel is now appearing.
Online Sportsbook Apps Projected To Launch in New York in 2021 or 2022
The framework which will guide online sports betting in New York remains undefined. But that hasn’t stopped operators from partnering with brick-and-mortar sites to take advantage of the legal retail sports betting in the state. This could give them an edge in online licenses.
The following is a list of sportsbooks that we anticipate joining the party once NY online sports gambling turns legal.
1. DraftKings Sportsbook
DraftKings is ranked as the best online sportsbook by our sister site Crossing Broad.
The monster company was one of the first to offer legal online sports betting following the repeal of PASPA in 2018, and DraftKings Sportsbook NY already has a strategic partnership in New York with Lago Resort & Casino in Waterloo.
New York’s betting platform provider system is unclear, but both DraftKings and FanDuel make as good a case as any for companies who can land one of New York’s two platform provider licenses. They also have the deep pockets to do it.
2. FanDuel Sportsbook
FanDuel Sportsbook NY quickly added to its fantasy sports empire by moving into the online sports betting industry. FanDuel Sportsbook is the most popular online sports betting site, receiving the
The company is already in New York as the official sportsbook of Tioga Downs in Nichols.
3. BetMGM
BetMGM is the online sports gambling platform of the famed MGM Resorts and Casinos. Its aggressive strategy in the market provides us no doubt that it’ll eventually become a major player in the NY online sports betting market.
4. PointsBet
Upstar Australian-based company PointsBet is shaking things up in the United States of America. Its unique PointsBetting feature is sure to be a hit in New York once it opens up for online sportsbook business.
5. William Hill Sportsbook
William Hill is the largest retail sportsbook in America and is widely recognized globally. New York will be just one of many states where its online sports betting business booms.
6. BetRivers Sportsbook
BetRivers Sportsbook already has a New York presence as the sportsbook for Rivers Casino in Schenectady, but you better believe it’s ready to hop on the online end of things when it’s go-time.
