They are the elite eight, and we’re not talking the start of college basketball season. We’re talking New York online sportsbooks coming soon.
On Monday, the New York State Gaming Commission (NYSGC) awarded mobile sports wagering licenses to eight platform providers that will operate sports betting in New York. Those eight providers will introduce nine operators to the state when sports betting goes live.
The state legalized mobile sports betting earlier in April, put out a call for applications in July, and set a Dec. 6 deadline to select applicants for licensure.
Who are the eight New York online sportsbooks?
The eight platform providers the NYSGC chose were:
Seven of the eight platforms will operate one mobile sportsbook in the state under their platform name. PointsBet will operate two sportsbooks: Resorts World and PointsBet. Many of the operators on the list are active in multiple states where sports betting is live. For example, DraftKings operates in 14 states, Caesars operates mobile sportsbooks in 11 states and Washington D.C., and FanDuel runs sports betting operations in 11 states.
Bally Bet, on the other hand, is live in only three states: Colorado, Iowa, and Indiana. Resorts World operates mobile sports betting in Nevada only, but they’re no stranger to the New York market. The operator runs a retail sportsbook at their venue in the Catskills.
Overall, the nine approved operators bring a mix of experience, newcomers, and familiar names in the New York sports betting industry.
The NYSGC awarded licenses to the eight platforms based on a scoring system that took into account:
Technical factors (75 points): Expertise in the market; integrity, sustainability, and safety; past experience; planned marketing campaigns; diversity and inclusion initiatives
Bonus factor (5 points): Willingness to share revenue with Native American tribes in the state
Pricing factor (Up to 20 points): Willingness to pay up to 50% in taxes on gross gaming revenue
Per NYSGC, only applicants that scored at least 60 out of 75 technical points would be considered “qualified.”
And while applicants were allowed to select the tax rate they wanted to pay (12.5% up to 50%), the NYSGC had the final say in the matter. The operators will pay a 51% tax on their gross gaming revenue, per the NYSGC’s tax matrix. The matrix enforces higher revenue rates when there are fewer operators and vice versa. For example, the tax rate could drop to 35% once there are at least 13 operators, no matter how many platforms there are.
When will NY mobile sports betting launch?
In general, new sports betting markets aim to launch before the two top betting seasons of the year: March Madness and the Super Bowl.
For example, more than 45 million people were estimated to wager on the NCAA tournament in 2019, generating more than $8.5 billion in bets.
And, earlier this year, the AGA estimated that 23.2 million Americans were going to place more than $4 billion in bets on the Super Bowl, noting that a record number of people would place bets with online sportsbooks.
With these lucrative betting opportunities ahead, it’s reasonable to expect sports betting to launch before the Super Bowl, which takes place on Feb. 13.
And consider this: The NYSGC’s original deadline for picking applicants for licensure was Dec. 6. By approving applicants this week, the commission cut nearly a month off their timeline, and this may help expedite the launch of New York online sportsbooks.