Get ready to place your bets, New York!
Not that it was ever in any doubt, but New York Gov. Andrew Cuomo signed budget legislation today that includes the framework for New York’s online sports betting plan.
Keshia Clukey of Bloomberg Tax reported Cuomo today signed the New York budget bill into law, officially making New York online sports betting legal, a welcomed development for those who have been waiting anxiously to wager in the Empire State.
— Keshia Clukey (@KeshiaClukey) April 19, 2021
New York, however, remains months away from officially taking legal online sports bets. Senator Joseph Addabbo Jr. (D-15) previously told ESNY the benchmark start date for the state will be Feb. 13, 2022, the date of Super Bowl LVI.
“You don’t want to miss out on another Super Bowl. I think this would be a good benchmark for New York to see how we’re doing,” Addabbo previous told ESNY.
Addabbo also noted there is a window of opportunity for the state to begin taking bets during the NFL regular season or playoffs prior to the Super Bowl, but it would depend on the number of bid applications received and the strength of those packages.
New York’s Online Sports Betting Plan Is Now Legal
The New York legislature agreed to a $212 billion state budget earlier this month that includes an online sports betting plan which closely resembles a plan promoted by Gov. Andrew Cuomo throughout negotiations.
The proposed bidding timeline for the New York online sports betting program will lead New York Gaming Commission to the end of 2021 to select a minimum of two platform providers for the state’s betting program. Included in the platform providers bids will be a minimum of four skins for state gamblers to utilize.
The state will issue a request for applications by at least July 1, and interested parties will enter into a competitive bidding process. The New York Gaming Commission will take into account the potential platform providers’ gross revenue estimates, the tax rate it’s willing to pay the state, past experience in the field, a timeline of its potential operations and its willingness to enter into revenue sharing agreements with the state’s Native American tribes or nations.
The minimum tax rate in the state has been set for platform providers at 13%. However, this will likely be driven much higher once the bidding process begins, as Cuomo said in previous reports he expects nearly a 50% to 55% tax rate.
The state will have 150 days after receiving applications to select two platform providers.
The selected platform providers will each pay the state a one-time fee of $25 million to host sports betting.
Platform provider servers to host sports betting programs will be housed in a New York casino. Providers will pay casinos $5 million annually to house their mobile betting servers.
NY Sports Betting Will Permit Certain In-State College Wagers
Additional details of the plan include:
- Bettors will be able to place wagers on collegiate tournaments taking place in New York and sporting events in those tournaments, so long as no New York college is involved in the game. Previous language of the bill had prohibited wagers on all in-state collegiate games or those involving New York colleges. This is similar to the current New Jersey regulations.
- $6 million will be dedicated to “problem gaming addiction treatment and resources.”
Youth sport programs will receive a boost as a new “statewide youth sports activities and education grant program for underserved youth” will be created and funded annually at $5 million.
- A proposal to allow for sports betting kiosks at stadiums, arenas, tracks and certain OTBs was not included in the bill.
- A request for information will be conducted to determine interest in the unawarded licenses for three downstate casinos.