Bally Bet reported to be planning New York launch this week
Sources indicate that Bally Bet is likely to launch its New York sportsbook in the next few days.
US.- Bally Bet Sportsbook is likely to launch in New York sometime before July 1, according to sources. Although legal online sports betting went live in New York on January 8, Bally’s held off from an early launch.
According to CEO Lee Fenton, the main reason was the operator’s focus on updating its sports betting app. But 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.
Bally’s recently launched its 2.0 platform in Arizona. Fenton had said: “In New York, we will be cautious as we keep a keen eye on marketing spend and how to navigate a high tax environment in sports betting.”
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FanDuel, DraftKings, Caesars and BetMGM have combined for over 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 featuring legal New York online sportsbooks, which begins on September 8.
See also: New York sports betting handle hits lowest monthly total since launch
Operators call for review of New York tax rate
Five months have gone by since New York mobile sports betting launched, and operators are starting to get uneasy. Mobile sportsbooks are subject to a 51 per cent tax on their gross sports betting revenue, the highest online tax rate in the country. Operators are now asking legislators to review that rate.
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.
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.
