The next step in New York’s quest for mobile sports betting is set to begin later this month. The New York State Gaming Commission finally released the Request for Applications (RFA) document, and operators can start applying soon.
Initially, the NYSGC was expected to release this information on July 1, but there was a slight delay in the process. Things have now been ironed out, and the 130-page document was made available to the public on Friday.
New York has had legal sports betting for a few years, but the market has remained small with no online options. Governor Andrew Cuomo was looking for a new revenue source, and he finally gave the green light to lawmakers to legalize this portion of the industry.
Even though online sports betting is coming to the state, there are still provisions in place that are going to hurt the overall growth. New York is not going to be able to challenge its neighbor, New Jersey, because of these rules.
Applications are due by 4 p.m. on August 9, and then the NYSGC will have 150 days to make a decision on each license.
High Tax Rate Needed
This document was loaded with information and updated sports betting rules, but one note regarding the tax rate really stood out. Each applicant is expected to provide a tax rate that is at least 50%, and those applications will be given a higher score.
In the RFA, it states, “An applicant must provide a tax rate that is fifty (50) percent or greater for its Preferred Scenario.” There are ways to get around this rule, but it’s going to provide a huge hit to the overall application if this tax rate is not in place.
Long Process Ahead
Now that the RFA is out, operators and other interested parties will have a week to review. The NYSGC will accept questions through July 16, and then an answer and explanation will be provided by July 22.
The second round of questions will be accepted through July 27, and the final answers will be delivered on August 2. This should give these operators enough time to understand what exactly they are applying for.
The NYSGC is expected to have oral presentations of each application, and then it will meet to discuss which operators should be chosen.
Operators will be chosen through what is being called a “competitive bidding process,” and this is where the limitations begin. There are only a handful of licenses that are going to be available, and it is going to be extremely competitive to get one.
There are some ways that operators can earn extra consideration by the NYSGC, and partnering with a Native American tribe is one of those. Special consideration will also be given to those operators that currently provide retail sports betting in the state.
DraftKings, FanDuel, and BetRivers are expected to receive a license by the NYSGC, but the rest of the licenses will be up for grabs.