The long-awaited start of mobile sports betting in New York is finally about to arrive after the New York State (NYS) Gaming Commission announced official mobile sports wagering would begin on Saturday, January 8, at 9 a.m.
Official Launch Date Announced
The NYS Gaming Commission approved four sportsbook operators which have satisfied all statutory and regulatory requirements for the official launch, Caesars Sportsbook, DraftKings, FanDuel, and Rush Street Interactive (RSI), while the individual launch would be dependent on each operator’s business capabilities and readiness.
Another five operators, Bally Bet, Bet MGM, PointsBet, Resorts World, and Wynn Interactive are still working with the regulator to satisfy the requirements and would be joining the party on a “rolling basis” as soon as the requirements for accepting and processing mobile wagers are met.
The timing of the official launch would provide for a strong start for those of the first four sportsbooks ready to go live as football fans would most definitely be interested in the game between the New York Jets and Buffalo Bills, a clash between teams from different ends of the state. Another object of betting interest from sports fans in the state would be the match between the New York Giants and Washington Football Team.
Tax Rate and Tax Revenue
The launch of mobile sports betting will make New York the biggest state to go live with online and mobile wagering to date. The Empire State has been offering in-person wagering on sport at each of the four upstate casinos but as none of them is less than an hour away from New York City, bettors preferred other options to try their luck.
Many of them opted to cross the Hudson River and place their bets on mobile apps available in neighboring New Jersey, resulting in state funds flowing out of New York and into the Garden State. No wonder, New York has generated a paltry $3.7 million in tax revenue so far but the long-awaited mobile wagering is expected to rectify the situation with tax revenue projected between $350 million and $500 million annually.
Mobile sportsbooks will be essentially operating on a revenue share model, paying 51% of their profits to the state despite some concerns raised by state legislators that the high tax might deter them from offering the kinds of business-building promotions available in other states.