New York Invites Potential Partners to Build a Platform for Mobile Sports Betting
The New York State Gaming Commission is looking forward to bringing in partners for mobile sports betting.
According to the application posted on the commission’s website, the state is looking for providers that are ready to pay a 50 percent or higher tax rate on their gross gaming revenue. It is in addition to the licensing cost of $25 million. Applicants prepared to put in that much effort will be given a 10-year license.
The state is keen on collaborating with two platform providers and has at least four operators available to bettors. As part of their application, platform providers will be responsible for establishing agreements with operators.
State Senator Joseph Addabbo, D-Queens, a prominent proponent of increased sports betting and Senate Committee on Racing, and Gaming chairman, has stated that sports betting apps should be available before the Super Bowl by February.
According to the budget legislators authorized in April, application calls will be on 1st July.
For licensing, applicants must pass through the technical review. Proposals will be evaluated based on sports betting experience and partners of operators. If an applicant has a revenue-sharing arrangement with a tribal casino operator in the state, they will get extra points.
Platform providers who agreed to the 50% tax on gross gaming revenue will earn a bonus of 20 points in their application. They will also earn a bonus of each percentage which is 50 if they go higher. Those who advocate for a lower rate will be penalized.
If applicants agree to the rate of 50%, it will be one of the highest sports betting rates in the country. New Hampshire has a 51 percent tax rate, whereas Pennsylvania has a 36 percent tax rate. Indiana levies a 9.5 percent tax on sportsbook profits, while New Jersey imposes a 13 percent tax on online sports betting profits.
According to one study in January conducted for the Commission by Spectrum Gaming Group, New York’s digital market can produce up to $856 million in gross revenue for all operators in the state. That, though, was not part of Cuomo’s strategy.
Since 2019, sports betting has been permitted in New York but limited to the upstate region of the state’s tribal casinos and commercially licensed. With this, New York City bettors have no choice but to utilize an illegal bookie, an offshore sportsbook, or travel to New Jersey to place their wagers.
