Applicants for NY Mobile Betting Revealed
A set of gambling operators — FanDuel, Kambi, Bet365, Fox Bet and theScore — have all applied for mobile betting licenses to operate in the state of New York with The New York State Gaming Commission. The state must now select two of platform providers, which must then offer at least four skins between them.
FanDuel, Kambi, Bet365, Fox Bet and theScore have all applied for mobile betting licenses to operate in the state of New York, according to the New York State Gaming Commission. ©Witizia/Pixabay
Submitted Proposals Could See Operators Partner with Other US Providers
The chief gambling regulator of the state of New York, the New York State Gaming Commission, has finally revealed which operators are gunning for a mobile betting license in the state.
Well-known household names such as FanDuel, Kambi, Bet365, FoxBet and theScore have all submitted proposals to the New York State Gaming Commission for licenses to provide mobile betting operations in the state.
As per the state of New York’s mobile betting gambling legislation, two platform providers must now be selected out of all the applicants, subsequently providing at least four skins between the two. Be that as it may, New York players are only permitted to hold one account per each respective platform provider.
One of the applicants, FanDuel, says it plans to offer products which its rival competitors, BallyBet, BetMGM and DraftKings, also provide, while Flutter-owned operator Fox Bet has also submitted its own individual bid — with no other partners alongside it.
For its part, Kambi has actually submitted two applications: one where it would be partnering together with Fanatics Sportsbook and Penn National Gaming, while the other would see it join forces with a series of powerful operators: Caesars, Resorts World, PointsBet, Rush Street Interactive and WynnBet.
Finally, TheScore, which is set to be acquired by Penn National Gaming anytime now, and the UK-based iGaming operator Bet365 have also sent in their proposals. These two will only be offering their own gambling products and services.
State Gaming Commission Has Points System In Place to Judge Applicants
New York State’s mobile betting license regulations are numerous, somewhat stringent, and yet also unique: along with a very costly $25 million license application fee, it has also implemented a point system to help the New York State Gaming Commission rank and judge the strength of applicants.
The state’s mobile betting licenses will be awarded to the two highest-scoring applicants. However, both need to first agree to pay the same tax rate on their operations. Curiously enough, despite there supposedly only being room for two operators in the state, the Commission also reserves the right to license additional bids if they are deemed strong enough.
A major factor in how platform providers will be scored according to this system will be the rate of taxation they agree to, with incentives being in place if a given provider is willing to offer more than 50% of its revenue back to the state of New York.
Breaking down the state’s point systems further, a tax rate between 12.5% and 30% will score applicants 3 points, while a 50% rate will award them 20 points. Additional points for each percentage point over 50% will also be given out by the Gaming Commission.
Everything boils down to the tax rates, ultimately, seeing as the selected tax rate will also determine the license’s overall term. Rates between 12.5% and 30% will generate a 3-year license term, between 30% and 50% 5 years, while a tax rate at 50% or over guarantees a 10-year term to the applicant.
Lastly, up to 75 points may be awarded for technical factors such as market expertise, as well as the integrity and sustainability of an applicant’s platform. Applicants who hold revenue-share agreement with Native American tribes or nations in the state could be awarded an extra 5 points on their application.
Now-Ex-Governor Cuomo Signed State Budget in April 2021
In April 2021, New York Governor Andrew Cuomo finalized the state’s 2022 fiscal budget, thereby paving the way for the long-anticipated launch of legal mobile sports wagering.
The FY 2022 budget bill first specified the provisions for legal mobile sports betting, including the aforementioned $25 million license fee, as well as the bidding process for potential licensees.
As he signed off on the historic bill, Cuomo expressed hope that the piece of legislation would aid the state of New York in recovering from the severe financial losses inflicted by the sudden novel coronavirus (Covid-19) global pandemic.
The law provides regulators such as the New York State Gaming Commission 150 days to select at least two operators which will be granted the privilege of offering sports betting online in the state. The ultimate aim here is to have online sports betting rolled out by the NFL Super Bowl in February 2022.
Governor Cuomo Finally Resigns Following Sexual Harassment Investigation
Former New York Governor Cuomo will not be signing anymore pieces of legislation anytime soon, following his recent resignation from the role amid numerous allegation of sexual harassment. Lieutenant Governor Kathy Hochul will now take over the role — becoming the first woman to be governor of New York in its entire history.
Despite being under investigation for numerous infractions, strong sexual harassment allegations are what lead to Governor Cuomo’s downfall, ranging from lewd and inappropriate comments to the actual groping of female colleagues and New York State staff members.
An investigative report released last week by the New York State Attorney General Letitia James found compelling evidence that Cuomo had sexually harassed 11 different women — most of whom had worked for him or the state at some point during his tenure.
Furthermore, the way in which his administration handled data on Covid-19-related deaths in New York nursing homes, his $5 million pandemic leadership book deal, and preferential treatment being given to his friends and relatives related to testing early on in the pandemic, all also played a significant role in his resignation.
NY Casinos Enjoyed Brief Reopening in September 2020
Back in September 2020, Governor Cuomo decided to allow New York State’s casinos to reopen at 25% capacity — a much stricter capacity than many other states which were reopening at 50% capacity at the same time.
Cuomo’s announcement also specified that privately-owned casinos and video slot machines in New York may resume their business also at 25% capacity beginning on September 9th, 2020.
In addition to stringent capacity rules, these private casinos were of course also all mandated to apply rigorous safety and hygiene measures, including better air filtration, as well as ensuring that patrons must wear masks indoors, except when eating or drinking.
