New York State regulators approved nine NY mobile sportsbook operators Monday. They include FanDuel, MGM, Wynn, Resorts World, and DraftKings. Legalizing mobile sports wagering in the state is a big deal because online sports forums expect the market to reach $1 billion in annual revenue.
Former Governor Andrew Cuomo legalized mobile sports betting in April. In the past, players could place in-person wagers in casinos. However, the nearest casino to NYC is Resorts World Catskill. As a result, people would drive to New Jersey instead.
According to Korean sports betting experts, around 20 percent of sports betting action in NJ came from New York residents who crossed the border. The NY State Gaming Commission approved ten-year licenses to two gambling firm groups.
NY Mobile Sportsbook Operators
The Kambi Group is one of the groups that received mobile sports betting licenses from the state. The operators belonging to the group include Caesars Sportsbook, Rush Street Interactive, Wynn Interactive, PointsBet, and Resorts World. The other group got a license under FanDuel. They include BetMGM, DraftKings, and Bally’s.
According to sports betting odds reports, the state taxes licensed sportsbooks at a rate of 51 percent of their gross gambling revenue. It is a steep rate compared to other states. On the contrary, the average online sports wagering tax rate in the US is 11 percent. New Hampshire is the other state that taxes sports betting at a 51 percent rate.
Mobile sports betting operators will pay a $25 million licensing fee. However, the good news is that the state has a promising market. There are many sports bettors in the state. Also, the state has a rich sports culture.
There is no timeline for the actual launch of mobile betting in the state. However, lawmakers hope that players can wager on the Super Bowl in 2022. After the awarding of licenses, the next step is creating a regulatory framework for the location of the servers.