New York moves closer to mobile sports betting
The New York State Gaming Commission has selected nine organizations to receive licenses as operators of mobile sports betting in the state. In addition, it has selected eight organizations to provide mobile platforms on which betting would take place.
The move came at the Gaming Commission”™s meeting on the afternoon of Nov. 8.
Once mobile sports betting launches in New York, the organizations will be paying the state a 51% tax on their gross gaming revenues, along with an additional $25 million licensing fee.
A study that was conducted for the Gaming Commission found that operators could receive up to $856 million in annual gross revenues in a mature market, which at a 51% tax rate could yield about $436 million in new gaming tax revenue for the state.
Among the organizations that received approval to both establish a gaming platform and operate it is BetMGM LLC, which is 50% owned by MGM Resorts International, owner of Empire City Casino in Yonkers. BetMGM is a partnership between MGM Resorts International and Entain Holdings. It is the exclusive sports betting division of MGM, both online and in MGM casinos nationwide.
One of the companies selected by the Gaming Commission as an operator was Rush Street Interactive Inc., which in August was chosen by the Connecticut Lottery Corp. as its sports betting operations partner.
“New York is a crown jewel market with more than 20 million residents which, upon launch, will become the largest online sports betting market in the United States,” said RSI CEO Richard Schwartz.
RSI currently operates online gaming in 11 states, including Connecticut and New Jersey. Upon launch of its online sportsbook in New York, RSI will be one of only three companies with online gaming market access to all three states.
RSI already has an established presence in New York through its partnership with Rivers Casino & Resort Schenectady, where it oversees the operations of the casino”™s retail sportsbook. Rivers Casino & Resort Schenectady was the first casino in New York history to accept a legalized sports bet and has been the leading commercial sportsbook in the state by revenue since its launch in 2019.
The Gaming Commission has established a complex set of regulations that covers many aspects of establishing the required electronic platform from the location of servers to tracking data. The regulations also guide procedures for handling betting operations, including factors such as how bets can be made and winnings paid.
Some industry observers have expressed confidence that mobile sports betting in New York will be able to be launched around the time of the Super Bowl at the beginning of next year.
It has been suggested by some who closely follow the gaming industry that approximately 90% of sports betting in New York state eventually will take place through the use of cellphones and other mobile devices.
Organizations that were approved to both establish mobile sports wagering platforms and receive operator licenses are: Betfair Interactive US LLC, d.b.a. FanDuel Sportsbook; Baily”™s Interactive LLC, d.b.a. Bailey Bet; BetMGM LLC; DraftKings; American Wagering Inc., d.b.a. Caesars Sportsbook; Wynn Interactive; and PointsBet New York LLC, d.b.a. PointsBet.
Empire Resorts Inc., d.b.a. Resorts World was selected to only receive an operator”™s license as was Rush Street Interactive NY LLC, d.b.a. Rush Street Interactive. Sports Information Services Limited, d.b.a. Kambi was selected as a platform provider.
The Business Journal”™s Kevin Zimmerman contributed to this report.