It has been a long journey to get online sports betting up and running in the state of New York. It appears that the finish line is finely in sight, and online sports betting could be available before the upcoming Super Bowl.
A new list of sports betting rules and requirements was recently published in The Register. This was one of the few items left on the list before online sports betting became a legal option.
It was former Governor Andrew Cuomo that initially got this process started when he changed his stance on mobile sports betting. That put lawmakers to work earlier this year to pass new legislation that would make this an option.
The New York State Gaming Commission has now taken over as it will finish making the necessary changes to sports betting rules. This state has struggled along the way to get online sports betting up and running, but there is optimism that February will mark the launch.
Two Groups of Operators in Place
There are two different groups of operators that will be launching online sports betting, but each group includes some big names. DraftKings and FanDuel highlight the first group of operators, while the other group has both Caesars and PointsBet included.
Both groups of operators will be required to pay taxes at a rate of 51%, which is the highest in the United States. Despite that high requirement, it’s not going to keep operators from looking to launch in New York.
Long List of Requirements
Before any online sportsbooks can launch in New York, they must first find a casino partner that will host the server. There is also a $25 million licensing fee required for new operators, and that must be paid in full before a site can launch.
Another interesting requirement is that sportsbooks will have to submit a promotion at least 15 days before it is offered. The New York State Gaming Commission will then review the potential promotion before it can be offered by the sportsbooks.
Several operators hoped that this requirement would only be in place for new promotions, but that ultimately wasn’t the case.
A Threat to New Jersey
One of the main reasons that New York is now moving to online sports betting is the fact that the state continues to lose out on business to New Jersey. It is expected that New York will eventually begin to take some business back from the Garden State, but it’s unclear how quickly that will happen.
New Jersey continues to be the gold standard in the U.S. sports betting industry as that state just went over the $1 billion mark in monthly handle two months in a row. October saw more than $1.3 billion wagered at sportsbooks, and nearly all of that was done online.
The long list of requirements in New York will hurt the overall market, but it’s still going to create some real competition for New Jersey.