The state will license two platforms providers, each of which can launch four sportsbooks
he New York State Gaming Commission disclosed Monday, August 9 the applicants for NY mobile sports betting providers as the state plans to partner with two platform providers and have four operators available for bettors.
As a result, some of the U.S. top sportsbooks have teamed together for the sports betting licenses in conjoined bills, which could see several brands entering the market.
One of the bids includes market leaders FanDuel, DraftKings, BetMGM and Bally Bet, which combined make up the majority of the U.S. sports betting segment. It is speculated that this leading position may potentially favor the proposal, as well as Bally’s recent partnership as the official sports betting partner of the NBA and the MLB in March.
A second bid also brings together a number of national brands: Caesars, Resorts World, PointsBet, BetRivers and WynnBet. A key factor for this bid is that the New York sports betting license will prioritize tribal partnerships in the state, and Caesars Sportsbook currently operates casinos in conjunction with the Oneida Nation.
Also as a conjoined bid are Barstool Sportsbook (Penn National Gaming) and Fanatics Sportsbook, two companies that have been expanding their presence in the market. Whereas Penn’s CEO Jay Snowden said the company has a “great opportunity” due to structural advantages, Fanatics has been recently valued at $18 billion and raised investment to expand into gambling.
On the solo bids, European gaming company bet365, the Canadian sportsbook theScore (recently acquired by Penn National, which casts doubt as to whether the bid will stand alone), and FOX Bet, which has recently signed NFL Hall-of-Famer Charles Woodson as brand ambassador.
There are six bids in total. It is worth noting that two of them have Kambi as primary applicant: the Caesars/Resorts World/PointsBet/BetRivers/WynnBet bid and the Fanatics/Barstool one. Penn National, which as stated above acquired theScore, thus also participates in two bids.
Following reviews and oral presentations starting on September 1, the NYS Gaming Commission plans to select finalists by December 6 and give those applicants a week to submit a final application. It is expected that the platforms will count with sufficient weeks to launch mobile sports betting in time for the 2022 Super Bowl LVI.
Besides the bonus points given for revenue-sharing agreements with tribal gaming operators in the state, proposals will also be scored depending on experience in sports betting. Applicants can also score extra points by agreeing to a 50% tax or more on gross gaming revenue, whereas those proposing a lower rate will receive fewer points. If this 50% were agreed on, it would be one of the highest rates in the country, along with New Hampshire’s tax rate at 51%.
According to a January study by Spectrum Gaming Group for the Commission, it is estimated that New York’s digital market could potentially generate up to $856 million in gross revenue. The administration expects to receive about $49 million in tax revenue in fiscal year 2022 and $357 million the following year.