The New York Gaming Commission has revealed the names of the two bids, made up of a total of nine operators, that they have recommended receive licences. The Commission met on November 8 to finalise the decision, with the identities of the winning bids named straight afterwards.
One consortium that has been awarded a licence is FanDuel, a name that will be very familiar to many sports betting fans in the USA. This consortium was made up of DraftKings, BetMGM and Bally Bet.
The other consortium was one of Kambi’s two proposals. Involving names like Caesars Sportsbook, PointsBet, Resorts World, Rush Street Interactive and Wynn Bet, this proposal also has links with the Oneida Indian Nation and Saint Regis Mohawk Tribes.
One of the meeting’s key decisions was to impose a 51% gross revenue tax rate on all participants. This matched what was in the tax matrix published last month. All operators must also pay a $25 million fee to obtain their 10-year licences.
PointsBet and Bally hail New York Gaming Commission decision
The operators involved in the process were quick to hail their success once the identities of the two consortia were known.
“Today’s news of being recommended by the New York State Gaming Commission marks an exciting moment for us at PointsBet,” Points Bet chief executive Johnny Aitken said.
Aitken was also delighted that his brand would now have access to the New York betting market, which has been identified as potentially being one of the USA’s biggest gambling markets once legislation in the state becomes more liberal.
Bally’s Corporation chair Soo Kim highlighted the same region’s importance in a statement issued on behalf of his company.
“This licence advances our overall market footprint and marks the latest milestone on our journey towards becoming the leading omni-channel gaming provider in the US,” he said. “Above all, we look forward to providing New York’s devoted fan base with engaging, best-in-class, sports betting experiences.”
There was also positive reaction to the news from the political sphere, with Senator Joseph Addabbo, a long-time advocate on behalf of online sports betting, hopeful that New York’s operators could compete effectively with their rivals from other states.
With some important sporting events lined up in the calendar soon, Addabbo was also keen to highlight the importance of New York residents being able to place sports bets as early as January 2022.
New Yorkers might be able to bet on the Super Bowl
“Of utmost importance remains the timeframe for the servers that validate the mobile bets to be up and running, ready to take New York’s first mobile sports bets in January and in time for the 2022 Super Bowl,” he said.
Assembly member Gary Pretlow is another politician who, alongside Addabbo, has advocated for online gambling such as virtual sports betting to be more accessible to New Yorkers. DraftKings chief executive Jason Robins thanked both men, as well as New York Governor Kathy Hochul and the Gaming Commission, for their decision.
“[We] look forward to bringing our top-ranked DraftKings mobile and online sportsbook to the millions of sports fans in the state, pending licensure and regulatory approvals,” he said.