New York online sports betting is still on schedule to begin by the end of the year with the hope that the program will be running at full capacity by the Super Bowl.
Senator Joseph Addabbo Jr. (D-15), a longtime proponent of online sports betting for New York, told ESNY he is optimistic that online sports betting may begin before the end of the year and be fully operational by the Super Bowl.
NY Online Sports Betting on Target to Hit Deadlines
He noted that the New York State Gaming Commission is on track to meet its July 1 deadline to release a request for applications for platform providers.
“It’s with some enthusiasm and optimism that I say that I appreciate the efforts of the gaming commission. It’s my opinion, but I believe they’re going to meet the July 1 deadline,” Addabbo told ESNY.
Addabbo stressed that getting the online sports betting program up and running isn’t as simple as “turning on a light switch.” It’s important to begin taking bets sometime before the year is out to work through any potential kinks the state may encounter.
There will be early hurdles, he said, but having the program at full capacity by Super Bowl LVI, on Feb. 13, 2022, will be crucial.
“I’m sure there will be early hurdles, but you want to be up and running at almost maximum capacity or potential right before the Super Bowl, which is the money maker. You don’t want to miss another one. If everything falls in line correctly we could have it up and running by the end of the year, and come Super Bowl we’ll have been in it for a while and worked out all the kinks. That’s my hope,” Addabbo said.
New York Online Sports Betting Entering its Bidding Process
Interested parties will enter into a competitive bidding process with the bid package window closing after 30 days. The New York Gaming Commission will have 150 days to select two providers to lead the state’s online betting charge. Each provider will have to include a bid package with at least two operators.
According to a gaming commission FAQ, an operator will be the consumer-facing entity in the online sports betting program. The platform provider will be the “back of the house” system that accepts and records wagers brought in through the skin apps. Operators must use the technology built by the platform providers for the acceptance and processing of all wagers.
A platform provider may also serve as an operator as well. For example, if DraftKings submitted a bit that was accepted by the commission to serve as a platform provider, it could also serve as one of the online sports betting providers, or apps, for state bettors.
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 in the bidding process, as Cuomo said in previous reports he expects nearly a 50% to 55% tax rate.