NY Reveals Nine Mobile Betting Licensees
The tender process in New York for the awarding of mobile sports betting licenses has finally come to a conclusion, with two successful bids comprising nine total operators now being recommended for betting licenses. The FanDuel-led consortium ended up being selected, as was one of Kambi’s two proposed bids.
The New York Gaming Commission has selected two successful bids comprising nine total operators for mobile sports betting licenses in the state. ©wiggijo/Pixabay
51% Gross Revenue Tax Will Apply to All Licensees
The tender campaign in the state of New York for the awarding of mobile sports betting licenses has finally come to a close, with the New York Gaming Commission choosing to go ahead with two bids comprising nine total operators.
The commission revealed the winning bids on Monday, November 8th, with the FanDuel-led consortium being one of them, consisting of DraftKings, BetMGM and Bally’s. The other successful bid was Kambi’s, which includes Caesars Sportsbook, PointsBet, Resorts World, Rush Street Interactive and Wynn Bet. This latter consortium will also collaborate together with the Oneida Indian Nation and Saint Regis Mohawk Tribes.
Another hot topic finalized at the New York Gaming Commission’s meeting was the 51% gross revenue tax rate being confirmed for all participants. This rate reflects the tax matrix published by the commission last month. All operators will also be required to pay a $25 million licensing fee for their ten-year licenses.
Initially launched in July 2021, the tender process was part of the state’s FY2022 budget, which laid out plans for a tax rate of at least 12%. A rate of at least 50% ended up ranking much higher in the request for proposal (RFP), though the commission still saw six bids come in for the betting licenses.
In addition to the selected FanDuel- and Kambi-led proposals, another proposal spearheaded by Kambi featured Penn National Gaming and sports merchandise retailer Fantatics. Finally, TheScore, which is now owned by Penn National, as well as Bet365, both put forward their own respective solo bids — though they were not as lucky as FanDuel and Kambi.
Operators All Welcomed Commission’s Decision
As news of the awarding of mobile sports betting licenses for the state of New York to nine operators broke yesterday, the winning bidders, hailing from the two consortiums which were chosen, issued statements welcoming the New York Gaming Commission’s decision.
For its part, Caesars boasted that it had already established a footing in the tri-state area, such as for example through its three retail sportsbooks at Oneida Nation properties, making it “uniquely positioned” to deliver a strong product to the area’s gambling market:
“We’ve been looking forward to the opportunity to bring mobile sports betting to New York. With more than 19 million people, New York will be the biggest mobile sports betting market in the country, and we feel we are uniquely positioned to bring an incredible product to that market. We’re pleased to have been recommended for a license by the New York State Gaming Commission, and we thank Governor Kathy Hochul, the State Legislature, and the NYSGC for their continued leadership in making mobile sports wagering available to the Empire State.”– Tom Reeg, CEO, Caesars Entertainment
WynnBet also highlighted the special position New Yorkers have as part of its Wynn Las Vegas and Encore Boston Harbour offerings, with Wynn Interactive chief executive Craig Billings noting that the operator also expected to pull in new customers: “We look forward to giving those customers more ways to earn and use Wynn Rewards. We also look forward to meeting and engaging with new customers in the state via WynnBet.”
Finally, Bally’s Corporation chair Soo Kim celebrated the fact that New York had now become the nation’s most populous state to legalize online betting:
“This license advances our overall market footprint and marks the latest milestone on our journey towards becoming the leading omni-channel gaming provider in the US. Above all, we look forward to providing New York’s devoted fan base with engaging, best-in-class, sports betting experiences.”– Soo Kim, Chairman, Bally’s Corporation
Applicants Initially Revealed in August 2021
The applicants for New York’s mobile betting licenses were revealed back in August 2021, after the New York State Gaming Commission disclosed that FanDuel, Kambi, Bet365, Fox Bet and theScore all applied for a chance at a license.
The commission subsequently faced the choice of selecting two providers in accordance with the state of New York’s mobile betting gambling legislation. It would then need to provide at least four skins between the two. New York players are only permitted, however, to hold one account per each respective platform provider.
The state’s mobile betting license regulations were both numerous and strict, as along with a very costly $25 million license application fee, it also created a point system to help the New York State Gaming Commission rank and judge the strength of applicants.
Governor Cuomo Signed Online Sports Betting in April
The prospect of legal online sports betting in the state of New York arrived suddenly this past April 2021, when former Governor Andrew Cuomo signed a bill which forced regulators to select at least two operators to offer sports betting online in the state within 150 days. The aim here was to have online sports betting rolled out for New York gamblers by the February Super Bowl in 2022.
The announcement came shortly after WynnBet’s revealed plan for expanding into at least nine US states throughout early 2021, with the operator expressing confidence early on that New York could very well be part of this rollout.
