New York selects nine online sports betting operators9th November 2021 8:14 am GMT
The New York State Gaming Commission has approved nine operators to offer online sports betting in the state.
The selected operators will pay a tax rate of 51 per cent of gross gaming revenue and expect to launch online betting in New York in the first quarter of 2022.
Betfair Interactive US (dba FanDuel Sportsbook) was selected as one of two primary applicants with platform and operator partners FanDuel, Bally Bet, BetMGM and DraftKings, while Sports Information Systems (dba Kambi) was approved alongside partners Rush Street Interactive, Caesars Sportsbook, Wynn Interactive, Resorts World and PointsBet.
“Today is a momentous occasion for RSI, sports fans across the Empire State, and for the gaming industry at large,” said Richard Schwartz, chief executive of Rush Street Interactive. “We are delighted to have been selected by the NYSGC in a very thorough bidding process and extend our congratulations to our fellow consortium members.”
Adam Greenblatt, CEO of BetMGM, commented: “We would like to thank the New York Gaming Commission as well as congratulate them for keeping to their timetable. New York has the potential to be one of the largest sports betting markets in the U.S. and BetMGM is particularly well positioned to become a leader in the state given the strength of the M life customer database, close proximity of Empire City Casino to support our omni-channel strategy, and parlaying our already leading positions in nearby states.”
“With more than 19 million people, New York will be the biggest mobile sports betting market in the country, and we feel we are uniquely positioned to bring an incredible product to that market,” added Caesars chief executive Tom Reeg. “We're pleased to have been recommended for a license by the New York State Gaming Commission, and we thank Governor Kathy Hochul, the State Legislature, and the NYSGC for their continued leadership in making mobile sports wagering available to the Empire State.”
The success of the two consortium came at the expense of standalone applications by bet365, theScore Bet and FOX Bet, who all failed to secure licenses, as did Kambi’s second consortium bid with Fanatics Sportsbook and Penn Sports Interactive.
Sydney-listed operator PointsBet was the first to benefit from Monday's news, which was released after the markets closed in New York. Shares in PointsBet Holdings Ltd. (ASX:PBH) gained 6.27 per cent to close at AUD$8.81 per share in Sydney Tuesday, while shares in Kambi Group plc. (STO:KAMBI) were trading 1.91 per cent higher at SEK234.80 per share in Stockholm early Tuesday morning.
Shares in FanDuel, FOX Bet and Betfair parent Flutter Entertainment plc. (LSE:FLTR) were trading 0.92 per cent higher at 12,595.00 pence per share in London Tuesday morning, while shares in BetMGM joint venture partner Entain plc. (LSE:ENT) were trading 1.16 per cent lower at 1,987.58 pence per share.