Four operators have been certified by the New York State Gambling Commission to begin the state’s online sports betting industry on January 8th.
Caesars Sportsbooks, DraftKings, FanDuel, and Rush Street Interactive (under the BetRivers brand) are the four approved operators.
In November 2021, New York’s gaming authority approved online sports betting licences for nine companies, with the remaining five (Bally’s, BetMGM, Wynn Interactive, Resorts World, and PointsBet) provisionally licenced to operate if they meet the state’s conditions.
“We are pleased to finally be able to give millions of enthusiastic New York sports fans the DraftKings mobile and online sportsbook,” said Jason Robins, CEO, Co-founder, and Chairman of DraftKings.
“With the college football championship game on 10 January, NFL playoffs approaching, and the NBA and NHL seasons in full swing, in addition to myriad other sports and betting possibilities available for play, fans have infinite enjoyment at BetRivers,” said Richard Schwartz, CEO of RSI.
Only 18 of the 32 states in the US that have legalised sports betting have also legalised mobile wagering, therefore New York’s legalisation of online sports betting is significant for the gambling sector.
By the beginning of 2025, analysts at Macquarie (an investment banking firm) predict that the state’s online betting sector will generate $1 billion in revenue and $500 million in tax income.
Sportsbooks will pay 51 percent of gross gambling revenue in taxes, which is a very high rate for the business when compared to the typical online sports betting tax rate in the United States (of around 11 percent ). According to Macquarie, New Hampshire is the only other state with such a high tax rate.
In addition to taxes, sports betting platform providers who were granted licences were required to pay a one-time licencing fee of $25 million.”Today’s announcement by the New York State Gaming Commission that four of the nine licenced mobile sports wagering operators have been approved to begin operations beginning on Saturday, January 8, 2022, is great news for New York in terms of revenue, new funding for education, addiction programmes, and youth sports, as well as new jobs,” said New York State Senator Joseph Addabbo.