The deadline for the Request for Applications by the New York Gaming Commission might not come for two weeks.
RFA’s Date Was July 1, 2021
The Request for Applications (RFA) by the New York Gaming Commission (NYGC) was due out yesterday evening (Thursday). According to unidentified sources speaking to Sports Handle, it could be delayed for up to two more weeks. July 1 was the state’s mandated date for the NYGC to issue its RFA, which would initiate the process for application for sports wagering operators. Another source also confirmed the postponement but didn’t estimate until when.
Since today is July 2, which marks the start of a long weekend for most people to celebrate Independence Day in the US, no new updates will likely be available until next week. An NYGC spokesperson didn’t respond to the requests by Sports Handle to comment on the matter.
Sports Wagering Could Bring NY $500 Million Annually
The deadline was supposed to start a highly competitive bidding process in which the commission would award new contracts to a minimum of two platform providers, who will partner up with the state and run sports betting operations in New York. The date for the process to start was July 1. It has been months since NY Legislature and Gov. Andrew Cuomo reached an agreement in April to legalize sports betting in the state.
According to Cuomo, New York can become one of the largest sports betting markets in the country. His office estimated that online sports betting could bring the state as much as $500 million a year in tax revenue.
Sen. Addabbo Wants Operators to Prepare for the Super Bowl
The commission also indicated a chance it would release a set of mobile sports betting regulations along with the RFA. They could also see a delay.
In an interview last month, Sen. Joseph Addabbo urged the commission to release the rules as early as possible to allow the state to prepare and launch mobile sports betting before the start of major sporting events. Addabbo said, “You want to be almost at your optimum level right before the Super Bowl because that is the big event.”
Applicants with an Answer 150 Days after the Last Application
When the RFA becomes available, providers will have 30 days to apply. The commission would have approved the providers in no less than 150 days from the day of the last received application, which means that providers would know whether they are approved or not, around Christmas. The commission cannot announce the winners earlier than that due to the discretion of the bidding process.
Platform providers could apply in a joint application. For instance, DraftKings could submit a joint application with FanDuel and pay $50 million for the license fee to the state. If it applies solo, it could pay $25 million. If a third company joins, they would pay a combined $75 million.