by Ben Perks
The New York State Gaming Commission announced nine sports betting operators that will be able to accept online wagers early next year. The official announcement on November 8 confirmed a report published by NY Post last week.
Two Sportsbook Consortiums
Various online sportsbooks teamed up to submit license bids. The commission selected two consortiums. Bally Sports, Bet MGM, DraftKings, and Fan Duel made up the first consortium. PointsBet, Caesars, WynnBet, Kamb, and Resorts World formed the second group. These bookmakers will now be able to provide New Yorkers with online sports wagering options that adhere to the state’s betting laws.
However, Fanatics and Barstool/Penn National, who teamed up to secure a gaming license, failed to get their license bid approved. Other proposals from Fox Bet, Bet365, and theScore Bet (which Penn acquired) were also not accepted.
Sportsbooks Thank Commission
Sportsbooks given the green light to provide betting and gambling services in New York released statements after the commission’s announcement. BetMGM CEO Adam Greenblatt said: “We’re pleased to share that BetMGM has been granted a license to operate mobile sports betting in New York, a state vital to ensuring nationwide leadership in sports betting and iGaming over time.”
Greenblatt also expressed gratitude for the lack of delays and talked about the potential of the state’s sports betting market. “We would like to thank the New York Gaming Commission as well as congratulate them for keeping to their timetable,” he said.
“New York has the potential to be one of the largest sports betting markets in the US, and BetMGM is particularly well-positioned to become a leader in the state given the strength of the M life customer database, close proximity of Empire City Casino to support our omnichannel strategy, and parlaying our already leading positions in nearby states.”
PointsBet, a sports betting provider from the second consortium, also released a statement that mentioned the state’s potential.
“Today’s news of being recommended by the New York Gaming Commission marks an exciting moment for us at PointsBet,” said Johnny Aitken, the CEO of PointsBet.
“Having the potential to secure market access to New York State – expected to be one of the largest and most important markets in the United States – represents another major milestone for our company, our brand, and our technology.”
Mobile Wagering Welcomed by State Senator
In April, New York State senator and chair of the Racing, Gaming and Wagering Committee, Joseph Addabbo, said he hoped sportsbooks would be fully operational before the Super Bowl in February. In a press release, he said that allowing online sports betting would help generate funds for state programs.
“While we already have in-person legal sports betting here in New York, it is clear that the states that allow for mobile wagering are far more successful,” he said.
“With another Super Bowl gone, New York continues to lag behind other states – even states that have just legalized sports betting – when we should be leading the way. I am hopeful that with the passage of legalized mobile sports betting, New York will soon begin to reap the benefits in terms of revenue, educational funding, addiction programs and jobs. For many, it is an exciting time to be a sports fan in New York.”
New York State’s Sports Betting Market Potential
Officials estimate mobile gambling will generate about $482 million in yearly tax revenue from an annual $1 billion market. Sportsbooks in New York will pay 51% tax on income – this is a far higher percentage than the average 11% in the rest of the US. New Hampshire is the only other state with a 51% tax rate.
Licensees will have to place their website servers in commercial casinos approved by the NYS Gaming Commission to adhere to regulations. After agreeing on an adequate establishment, gambling providers must pay a $5 million annual fee to the casino. However, as there is a lot of market potential in New York, operators seem undeterred by these charges.
Visit this legal sports betting page to learn about wagering laws in other US states.
Ben is a sports journalist & part-time trader with a passion for finding +EV bets. Ben lives in Madrid, Spain where he enjoys the live poker scene, and sunshine where he covers UFC, MLB, NHL, NBA, as well as tennis betting.
