- Platform provider license renewal fees have not been revealed.
- Bidders will only have seven days for revision between the final Q&A and their application deadline.
- New York expects 50% or more revenue share from chosen applicants.
ALBANY, NY - The anticipation for New York to legalize and launch online sports betting has been building for years. Discussions on the topic have been prevalent since 2019, and with New York's neighboring state, New Jersey, doing so well thanks to online sports betting options, it's clear why.
Now that the New York State Gaming Commission has released its Request for Applications, online sportsbook operators can begin making their bids to operate in New York.
Some issues have occurred, however. While the RFA offers answers to many potential questions that bidders may have, some details regarding New York gambling simply aren't present.
Questions And Answers
The NY Gaming Commission decided to release rounds of Q&A documents in reference to the RFA in an effort to clear up confusion. Four rounds in total are planned, two before the RFA which have already been released, and two after, only one of which has dropped so far.
There are several questions that are still not answered in the Q&A, however.
Applicants must make their bids without knowing how much they'll be expected to pay to renew their license, or if they'll have to renew it at all. All applications will be subject to a scoring system by the commission, the details of which have not been fully revealed beyond the fact that they must score at least a 60%. Whether or not a platform can provide more operators after receiving its license apparently hasn't even been considered.
More Answers Still To Come
There is another Q&A in the works that is scheduled to release August 2, but this is just one week before platform provider applications are due on August 9. That will give them only seven days to revise their applications with the new information.
Thankfully, the most recent Q&A did clear up a few things. All applicants are expected to bid a minimum of a 50% tax rate for the scenario of Platform Providers and Operators included in their specific bid. Clarification was provided on non-collusive bidding as well; the intention is to prevent applicant-to-applicant collusion by platform providers such as DraftKings or Fanduel from agreeing on a tax proposal threshold.
After applications are received, and the New York Gaming commission selects its platform operators, online sports betting will finally be available to residents.