New York Sports Betting Set To Launch
Written by Jade
Published date · Jan. 7, 2022 | Last Updated · Dec. 14, 2022 | Read Time: 2 mins
Four operators have been certified to start NY Sportsbook market
Caesars Sportsbooks, DraftKings, FanDuel, and Rush Street Interactive (RSI, via the BetRivers brand) are the four approved operators.
New York's gaming regulator approved online sports betting licences for nine companies in November 2021, while the remaining five operators (Bally's, BetMGM, Wynn Interactive, Resorts World, and PointsBet) will be permitted to operate conditionally if they meet state standards.
"We are thrilled to finally be able to provide the DraftKings mobile and online sportsbook to millions of dedicated New York sports fans," said Jason Robins, CEO, Co-founder, and Chairman of DraftKings.
"With the college football championship game on 10 January, the NFL playoffs approaching, and the NBA and NHL seasons in full swing, in addition to the myriad other sports and betting possibilities available, fans have unending entertainment at BetRivers," added Richard Schwartz, CEO of RSI.
Only 18 of the 32 states in the United States that have legalised sports betting have also legalised mobile wagering, making New York's legalisation of online sports betting critical for the casino sector.
Analysts at Macquarie (an investment banking firm) forecast that the state's online betting market will generate $1 billion in yearly revenue and generate approximately $500 million in annual tax income by the beginning of 2025.
New York Sportsbooks will pay 51 percent of gross gambling revenue in taxes, which is an extraordinarily high rate for the business when compared to the median tax rate on online sports betting in the United States (of around 11 percent ). According to Macquarie, the only other state with such a high tax rate is New Hampshire.
In addition to taxes, sports betting platform providers granted licences were required to pay a one-time licencing fee of $25 million.
New York State Senator Joseph Addabbo commented on the launch of the online sports betting market, saying, "Today's announcement by the New York State Gaming Commission that four of the nine licenced mobile sports wagering operators will begin operations on Saturday, January 8, 2022, is fantastic news for New York in terms of revenue, new funding for education, addiction programmes, and youth sports, as well as new jobs."