- Kambi Group bid sees licenses awarded to Rush Street, Caesars Sportsbook, Wynn Interactive, Genting and PointsBet
- BetMGM and Bally also in approved group fronted by FanDuel
- Fanatics, Penn National, Fox Bet and Bet365 did not gain approval
The New York State Gaming Commission (NYSGC) has approved ten-year sportsbook licences for nine online and casino betting operators who applied via two groups of companies.
The application by the Kambi Group saw Rush Street Interactive, Caesars Sportsbook, Wynn Interactive, Resorts World owner Genting and PointsBet awarded licences.
The process of legalising mobile sports betting in New York has accelerated this year after former governor Andrew Cuomo approved a change in state laws back in April. In-person bets at casinos had previously been legal in New York since 2013, but many of its citizens instead choose to travel to New Jersey, where mobile sports gambling is legal, to place their bets.
It is expected that sports betting platforms will go live in New York during Q1 2022, in time for the National Football League’s (NFL) title-deciding Super Bowl. The nine licensees will now need to find a facility and get approval from the NYSGC on a location to house the servers. By state law these must be in one of New York’s four commercial casinos, with the operators required to pay a US$5 million annual fee to that venue operator.
Each of the approved mobile sports betting operators will pay 51 per cent tax on its gross gambling revenue for the the duration of its licence. New York’s decision to place a high levy on gaming sees it equal New Hampshire for the highest state tax rate on sports betting. The median rate of taxation for the industry across the 32 US states where sports gambling is legal is 11 per cent.
As one of 18 states that have legalised mobile betting, Thomas DiNapoli, a New York comptroller, predicts that tax revenue from online sports betting could rise to US$500 million by 2025.
In September, New Jersey became the first US state to draw more than US$1 billion in revenue in a single month, and the state has seen revenue of US$7 billion over the first nine months of 2021.
New York State Senator Joseph Addabo has said that “once we enter the arena, we’ll eclipse New Jersey”.