The New York online sports betting journey is already off to a rocky start, as the New York Gaming Commission could not meet its July 1 deadline to release a request for application (RFA) for platform provider bids.
The New York Gaming Commission has yet to publish an RFA for bids from potential online sports betting platform providers. A request for comment from the commission was not returned.
Disappointment at New York Online Sports Betting Delay
State Senator Joseph P. Addabbo, Jr. (D-15), who has long been a proponent of online sports betting in the state, expressed his disappointment at the missed deadline.
“The fact that our state couldn’t meet its initial mobile sports betting deadline to take a positive step towards recognizing additional educational and anti-addiction funding is disappointing. I remain confident that in the end, New York will have a premier, top-shelf mobile sports betting product to offer its residents and effectively compete in the market,” Addabbo said in a statement to ESNY.
In early June Addabbo told ESNY he was confident the commission would be able to meet the July 1 deadline.
Each step of the state’s online sports betting program was meticulously planned since Gov. Andrew Cuomo signed budget legislation in late April. Deadlines were published for each step of the process until the state’s online sports betting launch.
The deadline for bid packages after the RFA was published was set for Aug. 1, but it’s unknown if this deadline will now need to be pushed back.
Unknown How Delay Will Effect Sports Betting Launch
Interested companies submitting platform provider bids will include a minimum of four mobile sports operators, or skins, for state gamblers to utilize.
After platform provider bid packages are received the gaming commission has 150 days to make a decision.
Addabbo told ESNY in a previous interview that he hoped online sports betting could begin in late 2021 and be at full capacity by the 2022 Super Bowl. It’s unknown how this RFA delay will effect the launch of the state’s online sports betting program.
The New York Gaming Commission will evaluate bid packages and 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.