New York State’s Gaming Commission has released the long-anticipated request for mobile sports betting applications.
Sports Betting Applications Are Due August 9
On Friday afternoon, the New York State Gaming Commission released the request for mobile sports betting applications. The applications request was long-awaited, as it was supposed to come out on July 1. The state would partner with at least two platform providers and four operators available for bettors. As part of their application, providers would also have to set up agreements with other operators.
The applications are due August 9. The commission would then proceed with reviews and live oral presentations, and it will select the finalists by December 6. It would allow the finalists to make their final application. The commission will award licenses at its following meeting, but it hasn’t set a date for that yet.
New York Will Grand Chosen Applicants a 10-Year License
According to the application on the commission’s website, New York State wants providers who would agree to pay taxes at 50% and more of their gross gaming revenue, in addition to the $25-million license fee. Those applicants who agree to this tax would receive a 10-year license.
The proposals will be reviewed based on a few factors, including operators’ experience with partners and experience in sports betting. Applicants may get bonus points if they have a revenue-sharing agreement with a tribal gaming operator in the state. All applicants will also need to pass a technical review.
Those platform providers who agree to the 50% tax on gross gaming revenue will have an additional 20 points added to their score. If they offer a higher percentage, they will get a bonus point for each percent above 50. Those who propose a lower tax rate will get fewer points.
One of the Highest Sports Betting Tax Rates
Now, residents from NYC have to bet with illegal operators or use sportsbooks from New Jersey. Licensed sports betting apps would launch in New York, and it would become one of the largest wagering markets in the country. It could even surpass New Jersey. New York residents make up 20% of New Jersey’s market.
According to Gov. Andrew Cuomo, the 50% tax is necessary, especially after the COVID-19 crisis threatened the state’s finances. If applicants agree to this tax, it would be one of the highest rates in the country for sports wagering.
For reference, Pennsylvania’s tax is 36% and New Hampshire’s tax is 51%. New Jersey’s tax is at 13% and Indiana’s at 9.5%.
New York Sports Betting Market Could Bring $856 Million
Sports wagering is legal in New York since 2019 but only at commercially licensed or tribal casinos in upstate New York. In May, upstate retail sportsbooks reported a monthly revenue of $1.6 million.
According to a study published by Spectrum Gaming Group, New York’s digital betting market could bring
$856 million in gross revenue for operators. However, Cuomo’s plan estimates around $49 million in tax revenue for 2022 and $357 million for the year after that. He believes that the market could generate around $500 million.