The state of New York has been one of the most followed for pending approval of sportsbook operators as the state works to launch mobile and online sports betting in the future. The state announced Monday the winning companies for licenses and more details.
What Happened: New York has granted sports betting licenses to the following companies:
- FanDuel, owned by Flutter Entertainment (OTC: PDYPY)
- Bally Bet, owned by Ballys Corp (NYSE: BALY)
- BetMGM, a joint venture from MGM Resorts International (NYSE: MGM) and Entain
- DraftKings Inc (NASDAQ: DKNG)
- Rush Street Interactive (NYSE: RSI)
- Caesars Entertainment (NASDAQ: CZR)
- WynnBet, going public via SPAC Austerlitz Acquisition Corp I (NYSE: AUS) and majority owned by Wynn Resorts (NASDAQ: WYNN)
- Resorts World
Operators teamed up on bids with two joint bids winning from an original list of six groups that bid earlier this year.
Sportsbooks will pay a 51% tax rate, the highest of any multi-operator market in the U.S.
Companies that missed out on acquiring a license in New York include bet365, Penn National Gaming (NASDAQ: PENN), theScore (acquired by PENN), Fanatics Sportsbook and Fox Bet, from Flutter and Fox Corp (NASDAQ: FOX).
Why It’s Important: New York is expected to be one of the largest sports betting markets given its population ranking fourth in the U.S. along with numerous sports teams that have loyal fans ready to bet on the outcomes of matches.
“New Yorkers represent a significant portion of the Wynn Las Vegas and Encore Boston Harbor databases, and we look forward to giving those customers more ways to earn and use Wynn Rewards,” WynnBet’s Craig Billings said Monday.
The 51% tax rate will be a hot topic for the companies that were approved in New York. The demand is likely to be high for sports betting in the state and many companies saw the opportunity to gain a license despite the tax overhaul.
New Jersey has around $1 billion in monthly sports bets during the NFL and NCAAF seasons, with an estimated 25% of bets coming from New York residents.
Companies that were granted sports betting licenses will need to pass final tests before launching. State officials are targeting going live in New York before the 2022 Super Bowl.
“New York has the potential to be one of the largest sports betting markets in the U.S. and BetMGM is particularly well positioned to become a leader in the state given the strength of the M life customer database, close proximity of Empire City Casino to support our omni-channel strategy and parlaying our already leading positions in nearby states,” BetMGM CEO Adam Greenblatt said.
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