New York state gambling regulators approve nine mobile sports betting operators

The companies’ sports-betting revenue would be taxed at 51%, one of the highest among states where sports wagering is legal, said regulators. Still, New York’s huge population represents a potentially lucrative mobile betting market for gambling companies. New York has estimated that mobile gambling will eventually generate about $482 million in annual tax revenue from a $1 billion sports wagering market.

The New York State Gaming Commission voted to approve two groups of betting operators for 10-year licenses on Monday.

In one group, FanDuel organized with DraftKings, the online division of Bally’s Corp.; and BetMGM, a partnership of MGM Resorts International and Entain PLC.

Those books include DraftKings, FanDuel, BetMGM, PointsBet, Caesars, Wynn and more.

New York is aiming to go live with online betting before the 2022 Super Bowl.

New York had a unique licensing process in which sportsbooks teamed up to submit bids together. The first “super bid” included DraftKings, FanDuel, Bally Bet and BetMGM.

The second group is made up of odds-provider Kambi, PointsBet, Caesars, Wynn, Empire Resorts (Resorts World) and Rush Street (BetRivers and PlaySugarHouse).

The New York Post’s report means New York would license eight platform providers and nine operators, more than initially expected.

There’s a third group led by Fanatics and Penn National/Barstool Sportsbook, which may be on the outside looking in, at least to start, but it’s possible they get added later.

The Post reported that Fanatics has not received the same paperwork as the other groups at this point.
The other applicants included Bet365, theScore and FOX Bet.

New York will have among the most unfavorable rules for operators with a $25M licensing fee and 51% tax rate on profits, tied with New Hampshire for the highest nationally. That could lead to fewer promotional and free bets, and worse hold on certain markets.

The tax rate would drop to 50% with 10-12 operators and to 35% with 13 total operators in the market.

New York has allowed retail sports betting since June of 2019 at four casinos, all at least an hour from New York City.