After the initial delay from the New York Gaming Commission to release the Request for Applications for the two platform providers to host mobile sports betting, the regulator has now started the process of accepting submissions. The state also requires the providers to have at least four gaming operators as partners to provide the gaming offerings.
Additional requirements from the state for the applicants state that they must agree to a 50% or higher taxing of gross gaming revenue, as well as providing US$25 million to acquire the licensing fees. If the candidates are willing to accept the conditions, then they will be awarded a 10-year license to provide mobile sports betting in the state.
Now Accepting Applications
The application process for candidates has officially started on Friday, July 9, and the New York Gaming Commission will accept submissions until August 9. Then, after thorough review and assessment, the commission will announce its decision on December 6 and give applicants an additional week to make a final submission. Then at the following meeting, the commission will announce its final vote.
Initially, the request for application was scheduled to begin on July 1, however, the commission missed the previous deadline and it did not provide clarification on the rescheduling. Applicants will be given points on several different factors. Starting with their experience in the field, points will also be awarded if they agree to share revenue with a tribal operator in the state.
Applicants can also score points based on the fact if they agree to the 50% tax on gaming revenue and receive a total of 20 points. And with each increased percentage above the 50% mark, they will receive a bonus point. Candidates who propose a lower revenue sharing index will respectively earn fewer points in their total assessment from the commission.
If candidates for the platform provider slots agree to the 50% rate of revenue sharing, then the number would one of the highest for sports wagering in the country. Currently, New Hampshire stands at 51%, Pennsylvania with 36%, Indiana with 9.5%, and New Jersey with 13% tax on mobile sports betting. Governor Cuomo believes that the platform could generate US$49 million in tax for 2022 and US$357 the following year.
Prediction
Senator Joseph Addabbo expects mobile sports betting in New York to be up and running by the end of this year, and to be in its full force by the Super Bowl. The chairman of the Senate’s Racing, Gaming, and Wagering Committee is optimistic that the application process can be concluded in time and that the platform could be fully operational by the next edition of the Super Bowl.
Most Suitable Candidate
One gaming corporation that is considered as the most suitable and possible winner of one of the two platform provider slots is DraftKings. The gaming giant has everything in store to become of the two providers for the mobile sports betting platform. The company also enjoys an exceptional relationship with del Lago Resort & Casino, as it operates a sportsbook in the property, and this could secure more points for the company if they partner.
Source: Bittenbender, Steve “New York invites potential partners to apply to build mobile sports betting platform”, Troy Record, July 10,
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