With the historic and official selection of mobile providers and operators for online sports betting in New York announced on Nov. 8, the process continues towards the date for an official launch for all involved.
The Empire State’s providers and operators are: DraftKings Sportsbook New York, BetMGM Sports Betting New York, Bally Bet, FanDuel NY Sportsbook, Rush Street Interactive (parent company of BetRivers), Caesars, WynnBET, Resorts World, and PointsBet.
All will pay a 51% New York tax rate for 10 years (plus a $25 million fee), which is the nation’s highest among legalized sports betting states. New Hampshire is the only other state that charges 51%.
Considered the crown jewel of legal online sports betting states (with the fourth-largest population at about 19.3 million), New York will have more options for customers to choose from than New Hampshire, where the DraftKings Sportsbook New York is the only option.
Keeping NY money in NY
The onset of New York's online sports betting sites gives the state a fighting chance to keep its bettors from crossing state lines to place their wagers and keeps tax revenue at home. To date, many New York residents are going to neighboring states such as New Jersey, Pennsylvania and most recently Connecticut to make bets. In fact, it is estimated that up to 20-25% of New Jersey’s betting volume comes from New York bettors via retail and mobile sportsbooks.
However, generating revenue in New York will be extremely difficult for the platforms that were selected Nov. 8.
In April, when the state legislature approved sports betting apps in NY to move forward, officials had estimated that mobile New York's mobile betting apps could bring in up to $500 million in tax revenue annually. That seems highly unlikely now with the new tax rate in place.
Provider Platforms Not Part of Plan
Sportsbook promo codes in NY, which thrive in other states to attract new customers and retain current ones, will not be part of the plan in New York. Some current customers in neighboring states might just want to keep their accounts up to date and continue their betting patronage there.
“With New York moving closer to the goal line to witness its first mobile sports bet, we must remain focused on providing a premier product and giving New Yorkers the best mobile sports betting options in order to effectively compete with neighboring states like New Jersey,” said state Senator Joseph Addabbo, chair of the Senate Racing, Gaming and Wagering Committee.
“I am confident that with the announced, credible winning bids, we have the potential of eclipsing other states in mobile sports betting handle, raise significant revenues and funding for education and youth sports, while effectively addressing the problem gaming issue. Of utmost importance remains the timeframe for the servers that validate the mobile bets to be up and running, ready to take New York’s first mobile sports bets in January and in time for the 2022 Super Bowl.”
There is no doubt about this, though: Even though the New York tax rate is high, having online sports betting and attracting new customers is far better than being limited to the four retail sportsbooks at the upstate casinos. See our analysis of winners and losers in New York for sports betting.
Speaking of Upstate
September sports betting handle in New York was $17.35 million, up 89.6% from August’s $9.15 million for the state’s four upstate retail casinos.
Rivers Casino in Schenectady led the way with $7.96 million, followed by Del Lago Casino in Waterloo ($5.43 million), Resorts World Catskills in Monticello ($2.708 million) and Tioga Downs Casino in Nichols ($1.253 million).