New York to launch sports betting on January 8 with first four licensees
Operators, suppliers and affiliates laud potential of the Empire State despite prohibitive 51% GGR tax rate
New York is set to launch regulated mobile sports betting this weekend after the New York State Gaming Commission (NYSGC) cleared the first four licensees to begin operation in America’s fourth most populous state.
Caesars, Rush Street Interactive and US market leaders FanDuel and DraftKings were approved by the NYSGC having satisfied all “statutory and regulatory” requirements to begin taking bets from 9am on January 8.
The quartet are the first to receive permission to launch having passed through the NYSGC’s stringent licensee selection process, which concluded in November 2021, with the award of nine licenses.
DraftKings CEO Jason Robins welcomed the approval and the potential benefits of offering sports betting to the Empire State’s sports fans.
“We are pleased to bring new levels of access and immersive engagement to New Yorkers with the arrival of mobile sports betting,” Robins said.
“A special thanks to Governor Hochul, Senator Addabbo, Assemblyman Pretlow, the New York Gaming Commission along with the tireless efforts of our dedicated DraftKings team,” he added.
These sentiments were echoed by Rush Street Interactive CEO Richard Schwartz, who referenced the impending college football championship game and NFL playoffs as a potential springboard to success in New York.
“We are grateful for the trust of the New York State Gaming Commission and for its professional and efficient support while we worked diligently to satisfy all launch requirements.
“RSI is thrilled to build on our heritage as the operator of New York’s first and most successful retail sports betting destination by launching online sports betting in the Empire State on the first day it is available,” Schwartz added.
The remaining five operators: Bally Bet, BetMGM, PointsBet, Resorts World and WynnBET have not been cleared to begin operation but the NYSGC suggested the quintet are “continuing to work” to meet its statutory and regulatory requirements.
Kambi, which serves as the primary platform provider for Caesars Sportsbook and Rush Street Interactive’s Betrivers sports betting app, lauded the launch as a significant milestone for the supplier.
“New York is among the most populated and sports passionate states in the US and will no doubt be one of the largest regulated wagering markets in North America, one we are both excited and honoured to be playing a leading role in,” Kambi CEO Kristian Nylén said.
Affiliate Better Collective, which operates the Action Network and Vegasinsider affiliate sites, has revealed it has entered into partnership agreements with three of the four successful New York debutants, with talks ongoing with the fourth operator.
The Copenhagen-based business suggested that its sports media platforms receive more than 500,000 visits from New Yorkers, impressions which US CEO Marc Pedersen suggested the affiliate is now in a position to utilize with sports betting content.
“Unlocking the fourth most populous state in the United States to mobile sports betting is a huge moment for Better Collective and our growing portfolio of US assets,” Pedersen said.
“We are strongly positioned and excited to continue delivering sports betting content to the many thousand sports enthusiasts from New York that visit our sites daily,” he added.
In November, the NYSGC awarded licenses to two consortia containing nine companies, although bet365, Penn National Gaming, theScore and FoxBet were left out in the cold.
Despite the praise from all corners of the industry for the impending launch, concerns remain about sport betting profitability for operators under New York’s controversial 51% tax rate, the highest of a multi-operator state in the US.
This starkly contrasts with Nevada and Iowa where operators pay just 6.75% tax on gross sports betting revenue. New York neighbors Rhode Island and New Hampshire both have rates of 51%, although these are states with monopoly sports betting operations.
Indeed, there have been suggestions that sports bettors near the border with neighboring Connecticut might cross state lines to place bets, with a recent report by geolocation firm GeoComply highlighting an upsurge in bets in October, following the Constitution State’s own launch of sports betting where operators pay a much lower tax rate of 13.75%.
Furthermore, Eilers & Krejcik Gaming estimated that New Yorkers bet $837m with New Jersey sportsbooks and mobile betting apps in 2019.