In April of 2021, former Governor Andrew Cuomo signed legislation that officially authorized online and mobile sportsbooks in New York state. Since the news hit local headlines, major sportsbooks from around the country have lined up for a bid at a NY mobile sports betting license.
An Altered Playing Field for Sportsbooks
What makes this situation unique is the strategy being employed by these sportsbooks: they’re teaming up. Only two mobile betting and casino licenses will be distributed in the state. Furthermore, the government requires that each licensing bid is backed by two operators.
Because of this, we’re seeing partnerships among rivals such as DraftKings and FanDuel. In addition to these companies, big gaming conglomerates such as Caesars Entertainment, BetRivers, and FOX Bet have also added their names to the list.
These top sportsbooks will be evaluated based on several criteria, including but not limited to market expertise, sustainability, diversity, safety, and experience.
It is essential that reputable and established organizations are overseeing New York’s sports betting environment. Not only is it important to player experience, but the state is asking for big bucks in return allowing such a platform to exist.
A Costly Investment
New York will be charging a 50% tax on all gross gaming revenue. Additionally, for each license distributed, providers will have to pay a one-time fee of $25 million to initiate operations.
Although these costs are high, the price demands that the sports betting industry in New York be controlled by a legitimate sportsbook. With access to nearly 20 million potential patrons, such costs should be nothing more than a drop in the bucket for the right sportsbook.
To all you excited New Yorkers, this news means that you can look forward to a clean opening whenever that comes along. Many are projecting that the state will have full access to online and mobile betting by the Super Bowl.
The Future of NY Sports Betting
Even though former Governor Andrew Cuomo recently resigned over sexual harassment allegations, it does not seem like the move will have any significant effect on the new sports betting legislation.
But that doesn’t mean that there won’t be any legal challenges. Florida, for example, recently ratified a gaming compact with a provision for sports betting. Despite overwhelming state and federal approval, several organizations have made complaints to the courts in an attempt to overturn the ruling.
While the political climate in Florida is drastically different than that of New York, everybody’s got haters. And we expect to see said haters hitting the headlines soon enough.
The state of New York has big things coming for it as the state enters a new age of gaming expansion. But until the state works out all the kinks, you can still place bets and play online games through a variety of offshore online sportsbooks.