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The much-anticipated launch of mobile sports betting in New York, the largest U.S. market to permit online wagering to date, will take place on Saturday (January 8), following approvals granted by state gaming regulators.
Four operators — FanDuel, DraftKings, Rush Street Interactive and Caesars Entertainment — “have satisfied all statutory and regulatory requirements necessary to accept and process mobile sports wagering activity,” according to a statement released Thursday by the New York State Gaming Commission (NYSGC).
The gaming commission said the mobile sports-betting operators can launch as soon as Saturday at 9am EST.
Although the commission said that each of the companies will determine when they begin to take bets, each of the four have said they will be ready to launch on Saturday.
“Today’s news from New York is an exciting step in the expansion of sports betting and something we’ve anticipated for some time,” said Chris Holdren, co-president of Caesars Digital. “We at Caesars Sportsbook couldn’t be more thrilled to be one of the first operators to receive a license for mobile sports wagering operations in the state.”
“We are excited to finally be able to offer millions of passionate New York sports fans the top rated DraftKings mobile and online sportsbook,” said DraftKings CEO Jason Robins, crediting New York political leaders and the commission for helping to make the launch a reality.
“We are grateful for the trust of the New York State Gaming Commission and for its professional and efficient support while we worked diligently to satisfy all launch requirements,” echoed Richard Schwartz, president of Rush Street Interactive (RSI).
“RSI is thrilled to build on our heritage as the operator of New York’s first and most successful retail sports betting destination by launching online sports betting in the Empire State on the first day it is available.”
The goal among New York legislators and regulators had always been a launch in advance of next month’s Super Bowl, and now the four operators will be able to capitalize on the entire NFL playoffs, which begin January 15.
However, five licensed operators are currently left on the outside looking in, those being BetMGM, PointsBet, WynnBET, Bally’s and Genting's Resorts World.
The commission did not specify why the remaining five were not granted approval or give a timeline as to when the green light may be given.
“The remaining five conditionally licensed mobile sports wagering operators continue to work towards satisfying statutory and regulatory requirements necessary to launch and will be approved on a rolling basis when requirements are met,” the commission said in its statement Thursday.
New York will be the first new state to launch mobile betting in 2022, and certainly the most closely watched, not only because of its status as the largest U.S. market to date to launch mobile betting, but also due to its uniquely high tax rate.
The 51 percent revenue share that the nine licensed operators will pay New York is the highest tax rate in the nation among states with a competitive commercial market.
According to VIXIO GamblingCompliance forecasts, the state will produce more than $1.1bn in annual revenue by 2025, which would allow the state to hit its targeted goal of $500m in annual tax revenue based on the 51 percent revenue-share rate offered by the nine operators during a recently concluded competitive application process.
Democratic state Senator Joseph Addabbo, who led the Senate’s efforts to approve mobile sports betting, called the commission’s announcement “great news for New York in terms of revenue, new funding for education, addiction programs and youth sports, as well as new jobs.”
New York will also see a more restrictive environment for promotions than in other markets.
In addition to being the most expensive local television advertising market in the country, operators will have to submit promotional materials to the commission for approval 15 days in advance and cannot describe bets as “risk-free” if bettors are required to incur a loss or risk their own money in order to use or withdraw winnings.
Unlike in some other jurisdictions with a higher tax rate such as Pennsylvania, operators will also not be permitted to deduct any promotional play from their revenue share to the state.
