After an initial delay in releasing its request for applications for New York online sports betting platform providers, the New York Gaming Commission has stayed on schedule and marches forward to a late 2021, early 2022 sports betting launch.
The Gaming Commission released its second round of answers from interested applicants to clear up common questions about what needs to be included in bid packages for online sports betting licenses. The commission noted it would publish two rounds of answers before its Aug. 9 deadline for applicants to submit bid packages.
Second Round of New York Online Sports Betting Answers
While most of the second round of questions regarded bureaucratic questions about submitting applications, fingerprints and if three or four-ring binders should be used in the process (riveting), the gaming commission did provide answers to several questions about changes for platform providers after licenses were awarded.
An interested applicant posed a theoretical question about a platform provider changing ownership during its sports betting license term and how it could affect its relationship with one of its sports betting operators.
Q: If the platform provider undergoes a change of control such that it is owned by a competitor of an operator, may the operator switch platform providers?
A:This allowance is not contemplated.
Additionally, a separate applicant asked the gaming commission if an operator could leave a platform provider if “there is a failure on the platform provider to adequately deliver its required objectives and/or otherwise fail to meet the requirements of a license holder.”
The gaming commission confirmed a change could not be made in this scenario.
Additional New York Online Sports Betting Answers
Several other answers were provided during the second round of questions:
- A proposed tax rate of 49.99% would receive 15 points for an applicant. A proposed tax rate of 50% would receive 20 points for an applicant.
- Revenue sharing agreements with multiple New York tribes will result in more points for an applicant.
- A qualifying revenue-sharing agreement with a native American tribe or
nation can be signed with either the platform provider or the operator for an
application to be eligible for bonus points.
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.