Bally Bet goes live in New York mobile wagering market
Bally Bet becomes the ninth online sportsbook to go live in New York.
US.- Six months after the launch of New York’s mobile sports betting market, Bally Bet has finally made its debut. There are now nine operators online in the state: FanDuel, DraftKings, Caesars Sportsbook, BetMGM, PointsBet, BetRivers, WynnBET, Resorts WorldBET, and now Bally Bet.
According to CEO Lee Fenton, the main reason for Bally’s delay was the operator’s focus on updating its sports betting app. However, chairman Soo Kim also suggested that the delay was a deliberate choice to avoid the fierce competition during the initial introduction of sports betting in the state.
He said: “We have a longer-term plan. We think that the current version of sports betting is not a great business. It’s a fine business but not a great business.”
“We think that there will be a wave of consolidation that will rationalize promotions but more importantly I think people will just stop competing with free money but people will start competing with product,” Kim added.
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FanDuel, DraftKings, Caesars and BetMGM together have 90 per cent of the market share and revenue share in the Empire state. Bally Bet already missed the Superbowl and March Madness, but the sportsbook will be up and running for the first full NFL season to see legal New York online sportsbooks. That begins on September 8.
See also: Bally Bet enters Ontario’s online gaming market
Operators call for review of New York tax rate
Operators have called for legislators to review the tax rate in New York. Mobile sportsbooks are subject to a 51 per cent tax on their gross sports betting revenue, the highest online tax rate in the country.
According to Bloomberg, operators are cutting back on their marketing and promotional offers amid ongoing losses. Companies like DraftKings and FanDuel are asking legislators to lower taxes after agreeing to them just last year.
See also: New York sports betting handle hits lowest monthly total since launch
The average sports betting tax rate in the US is 19 per cent, according to Morgan Stanley. New Jersey taxes online sports betting at 14.25 per cent, while Pennsylvania taxes at 36 per cent. New York also includes promotional credits given to players in the calculation of taxes.
Joe Addabbo, the New York state senator who chairs the Senate’s Racing, Gaming, and Wagering Committee, has noted that operators were aware of the taxes when they competed for licences last year.
