If you want a piece of New York online sports betting it’s likely going to cost you.
After the New York Gaming Commission released the details of the state’s request for applications (RFA) for online sports platform providers, it is increasingly obvious that potential bidders should expect to share at least 50% of their revenue with the state to be considered.
New York Online Sports Betting Scoring System
The gaming commission must accept at least two platform providers and four sportsbooks operators for the state’s online sports betting program. Applicants will submit bid packages to the gaming commission and each package will be awarded points depending on their outlines. To be considered for a license, applicants must total at least 60 points out of a possible 75 point total.
The platform operator can submit a bid package where it will also serve as one of the two sportsbook operators for the state.
The most variability for applicants in the process is in the pricing factor section. Applicants will propose a taxation rate for the state and be awarded points based on how much they are willing to be taxed.
Here is how that point scoring will be determined:
- Proposed taxation rate of 12.5% up to 30%: 3 points.
- 30% up to 40%: 10 points.
- 40% up to 50%: 15 points.
- 50%: 20 points.
Additionally, applicants will be awarded one extra point per every percentage point they go above 50%. For example, if an applicant proposes a 60% revenue share, they will receive 30 points.
It’s likely this will be where the bid are won or lost. In the event of a tie, the applicant with the higher pricing factor score shall be ranked higher.
Additional Scoring Factors
Here are the rest of the scoring factors:
- Expertise in the market of the Applicant and the Applicant’s Proposed Operators: 25 points.
- Integrity, sustainability and safety of the mobile sports wagering platform: 20 points.
- Past relevant experience of the applicant and the applicant’s proposed operators: 15 points.
- Advertising and promotional plays: 7.5 points.
- Capacity to rapidly and efficiently bring authorized sports bettors into the applicant’s platform: 2.5 points.
- Applicant’s efforts to foster racial, ethnic, and gender diversity in applicant’s workforce and the each of the applicant’s proposed operators’ workforce: 2.5 points.
- Other factors impacting revenue to the state: 2.5 points.
Applicants who have a proposed revenue-sharing agreement with a Native American tribe or nation that has a current gaming compact with the state will receive 5 bonus points.
An applicant’s final score will be determined by adding the technical factor score, any tribe or nation bonus and the pricing factor score. The pricing factor score has the potential to net an applicants the most points for their bid package out of any other potential category.
Interested platform providers will now have until Aug. 9 to submit bid packages. Oral presentations for bid packages will commence on Sept. 1 and the gaming commission will then select applicants who will be considered for licenses before Dec. 6.