New York sets final rates for online sports betting
New York gaming regulators are close to deciding who will receive a coveted mobile NY sports betting licence.
US.- The NYS Gaming Commission has set a final tax rate matrix for online sports betting, which must be met by all bidders in order to be considered for a licence. Bidders have until Monday (October 25) to amend their bids.
The matrix is a table that establishes proposed rates based on the number of platform providers and sports betting operators selected. Based on the request for proposals released in July, the NYSGC will select a minimum of two platform providers and four operators. Companies may serve in both capacities.
For a scheme of two platform providers and four operators, the proposed tax rate is 64 per cent, the highest in the US. The tax rate decreases as the number of providers and operators increases: under a 25 operators and 15 platform providers scenario, the tax rate will be 35 per cent.
In order for bidders to be considered for an award, they must agree to the proposed tax rates or be disqualified. The letter sent by Gaming Commission Secretary Kristen Buckley to all bidders indicates that applicants that consider their proposal to meet the required rates do not need to submit an amended proposal.
The New York State Gaming Commission has received six bids, three from solo companies and three group bids. The commission must select at least two platform providers, which will be in charge of the technology the online sports betting program will use, and four platform operators from the submitted bids.
The list of applicants includes: bet365; Kambi with Fanatics Sportsbook and Penn Sports (Barstool); Betfair dba FanDuel with Bally Bet, BetMGM, DraftKings, and FanDuel; FOX Bet; Kambi with Caesars, Resorts World, PointsBet, Rush Street (BetRivers), and WynnBET and theScoreBet.
See also: FanDuel bid proposes New York mobile betting tax rate of 50%
