The New York State Gambling Commission has approved four operators to launch the state’s online sports betting market on 8 January.
The four approved operators are Caesars Sportsbooks, DraftKings, FanDuel and Rush Street Interactive (RSI, via the BetRivers brand).
New York’s gambling regulator approved online sports betting licences for nine operators in November 2021 and the rest of the five operators (Bally’s, BetMGM, Wynn Interactive, Resorts World and PointsBet) will be allowed to operate if they meet the state’s requirements, as they have been conditionally licensed.
Jason Robins, CEO, Co-founder and Chairman of DraftKings, said: “We are excited to finally be able to offer millions of passionate New York sports fans the DraftKings mobile and online sportsbook.”
Richard Schwartz, CEO of RSI, also commented: “With the college football championship game on 10 January and NFL playoffs approaching, and the NBA and NHL seasons in full swing, in addition to countless other sports and betting options available for play, fans have endless entertainment at their fingertips at BetRivers.”
Out of the 32 states that have legalised sports betting in the US, only 18 have also legalised mobile wagering, so the legalisation of online sports betting in New York is important for the gaming industry.
Analysts at Macquarie (an investment banking company) suggested the state’s online betting market will hit annual revenue of $1bn and annual tax revenue is expected to reach around $500m by the beginning of 2025.
In terms of taxes, sportsbooks will pay 51% of gross gambling revenue, which is extremely high for the industry compared to the median online sports betting tax rate in the US (of around 11%). The only other state with such a high tax rate is New Hampshire, according to Macquarie.
In addition to the taxes, sports betting platform providers that were awarded licences had to pay a $25m one-time licensing fee.
Commenting on the launch of the online sports betting market, New York State Senator Joseph Addabbo, said: “Today’s announcement by the New York State Gaming Commission that four of the nine licensed mobile sports wagering operators have been approved to begin operations starting on Saturday, January 8, 2022, is great news for New York in terms of revenue, new funding for education, addiction programs and youth sports, as well as new jobs.”