New York is hoping to launch online sports betting prior to the Super Bowl in February, but there hasn’t been a ton of news on the topic lately. That all changed this week in a report from the New York Post.
According to the report, nine new operators will receive online sports betting licenses from the state next week. There are three different groups of operators awaiting word, and these licenses are going to go to some big-name companies.
BetMGM, DraftKings, and FanDuel are three of the operators that are expected to be named next week. Operators such as Caesars, PointsBet, and Rush Street are in a second group that is vying for an online license.
The third group includes companies such as Barstool Sportsbook and Fanatics. According to inside sources, it appears that these two sportsbooks could be left without a license.
State Takes Majority of Profits
All of the operators that are eventually chosen to offer online sports betting in New York will have to agree to give 51% of the profits to the state. This agreement is unheard of in the US sports betting industry, and it could have a huge impact on the growth of the market.
Bettors in New York are not likely to see any free bets from the sportsbooks, and the odds could be adjusted as well. Sportsbooks will need to make a profit somehow, and winning it from the customers will be the best option.
Penn National Down on NY Gaming
It’s unclear if Penn National Gaming will receive an online sports betting license in New York, but the company isn’t expecting much from the state either way. CEO Jay Snowden recently spoke out about the New York industry and about the struggles that approved operators will face.
Snowden went so far as saying, “I don’t think a single operator will make money in New York.” Penn National Gaming operates the Barstool Sportsbook app in 10 states throughout the US, and it has made money in those markets.
Snowden was largely referencing the 51% revenue share that is paid to the state, but it’s clear that he believes that other states will continue to steal business from New York.
Can New York Catch New Jersey?
The massive growth of online sports betting in New Jersey is one of the biggest reasons that New York is trying to legalize the industry. New Jersey is now the clear leader in this industry, and it’s hard to see New York catching up anytime soon.
The October sports betting numbers for New Jersey should be announced in the coming days, and the report could be staggering yet again. In September, New Jersey posted a total sports betting handle of more than $1 billion, becoming the first US state to do so.
New York lawmakers have some lofty projections for legal sports betting, but there are enough limitations in place that New Jersey should remain at the top of the leaderboard.