DraftKings, Caesars, BetRivers, and FanDuel will be the first to launch online sportsbooks in New York when the industry goes live Saturday morning. [Image: Shutterstock.com]

Four operators get the green light

The New York Gaming Commission has announced that four online sportsbooks will be able to go live in the state starting at 9am on Saturday, January 8. DraftKings, Caesars, BetRivers, and FanDuel have confirmed that they will be ready to launch on day one. They successfully met all regulatory requirements.

PointsBet, BetMGM, Resorts World, BallyBet, and WynnBET will be able to launch in the future.

PointsBet, BetMGM, Resorts World, BallyBet, and WynnBET will be able to launch in the future. According to the NYGC announcement, these five sportsbooks will be able to get up and running when they meet the relevant “statutory and regulatory requirements necessary to launch and will be approved on a rolling basis when requirements are met.”

Ready to compete with its neighbor

Speaking about the upcoming rollout of online sportsbooks was long-time proponent of gambling expansion, New York Senator Joseph Addabbo. The Racing Gaming and Wagering Committee Chairman welcomed the arrival of online sportsbooks in time for the NFL Playoffs and the Super Bowl, a very important time of year for operators. He believes that in time, New York could surpass its neighbor New Jersey in betting handle. According to estimates from DraftKings and FanDuel in 2020, up to 25% of the total betting handle in New Jersey comes from people in New York.

New Jersey has consistently been the nationwide leader when it comes to sports betting handle. In December, it also became the first state to generate at least $100m in revenue in a single month.

The Empire State will be the largest US jurisdiction in terms of population to go live with online sports betting. Retail sportsbooks have been operational in the state since 2019, but these are all located in upstate New York, at least a one-hour drive from New York City. Therefore, they have had limited success to date.

A lucrative sector for the state

New York is imposing a 51% tax on revenue for online sportsbooks, on top of a $25m license fee per operator. This is the highest sports betting tax rate in the country, more than three times the rate in New Jersey, setting the stage to be a lucrative sector for the state going forward.

To date, 29 states and Washington, D.C. have launched legal sports betting markets since the ending of the federal ban in May 2018.

Experts estimate that New York’s annual betting handle could reach $10bn and generate close to $1bn in revenue by 2025. Much of the tax revenue will go toward public programs like education and $6m is earmarked for gambling addiction program funding each year.

Online sports betting legalization officially came to pass in New York last April after then-Governor Andrew Cuomo signed the bill into law. The NYGC then went about designing the regulatory requirements for the industry and assessing potential applications. In November, it announced the first nine sportsbooks that would get licenses to operate in the state.

FanDuel signs a partnership with the Bills

On the same day as the NYGC announcement, The Buffalo Bills and FanDuel Group revealed a new multi-year partnership. This deal sees FanDuel become an official mobile sports betting partner of the NFL team. It was announced on Twitter on Thursday:

As part of the agreement, FanDuel will be able to use Bills logos and marks, as well as get access to a wide range of media assets, including radio and television and in-game signage at Highmark Stadium. The sportsbook operator will also now be a presenting sponsor of a Buffalo Bills podcast called Bills by the Numbers.

(this story/news/article has not been edited by PostX News staff and is published from a syndicated feed)



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