The New York State Gaming Commission on Nov. 8 awarded nine temporary mobile sports betting licenses. These mobile licenses signal a massive market change that will recapture millions of dollars in lost gaming revenue in New York. It will also eliminate the need for bettors to cross New Jersey’s border to place mobile sports bets.
Mobile sportsbooks that received temporary mobile sports betting licenses will likely announce their own launch dates in the coming days.
Mobile Sportsbooks That Got Temporary Mobile Licenses
The mobile sportsbooks that were awarded temporary mobile sports betting licenses were:
- Caesars Sportsbook
- Resorts World Bet
- Rush Street Interactive
- Bally Bet
The first five operators submitted Requests for Applications under Kambi. They had the best overall revenue package for New York. The other four sportsbook operators increased the market size while keeping the effective tax rate at 51%. The NYSGC determined that adding these final four sportsbooks was in New York’s best interest.
For the same reason, Bet365 was not awarded a license. Its inclusion would’ve reduced New York’s effective sports betting tax rate from 51% to 50%. That was not an acceptable compromise to add one sportsbook to a market of nine sportsbooks. So, Bet365 did not receive a temporary mobile sports betting license.
Also Read: How competitive is New York mobile sports betting supposed to be?
Sportsbook License Announcements
Sportsbook operators wasted no time announcing their inclusions in New Yorks’ mobile sports betting market. BetMGM released a statement while the NYSGC’s meeting was still ongoing:
“We’re pleased to share that BetMGM has been granted a license to operate mobile sports betting in New York, a state vital to ensuring nationwide leadership in sports betting and iGaming over time,” BetMGM CEO Adam Greenblatt said. “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…”
Resorts World Bet also included its launch in its own announcement:
“This is an extremely exciting time for New Yorkers as we get ready to launch the leading mobile sports betting program in the country.” President of Genting Resorts East Robert DeSalvio said. “Our team, with its deep ties to New York, combines the very best in gaming and innovative technology and will be able to deliver a program on day one that provides more choices for consumers, more tax revenue for New York, and more reinvestment in the local communities where we operate…”
Finally, WynnBET made itself known through its post-Gaming Commission meeting announcement:
“We’re excited that the New York State Gaming Commission has approved our request for application for online sports betting,” Wynn Interactive CEO Craig Billings said. “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. We also look forward to meeting and engaging with new customers in the state via WynnBET.”
What Mobile Sports Betting Means For New York
New York launched retail sports betting in 2019, but prohibiting mobile sports betting has disadvantaged New York in the sports betting market.
Large numbers of New Yorkers are willing to take a ferry across the Hudson River to bet in New Jersey instead of driving to a New York casino up to two hours away. One study found that almost 20% of New Jersey’s 2019 betting handle came from New Yorkers. Last month, Connecticut launched mobile sports betting, and New Yorkers began traveling there, too.
That’s money that can’t be taxed by New York, so it can’t be used to fund problem gambling services.
Mobile sports betting will likely increase the total number of bettors in New York, too. Easy signup processes are important drivers of sportsbook growth. When Illinois temporarily allowed mobile registration during the pandemic, Illinois sports betting revenue increased steadily. When Gov. J.B. Pritzker ended remote registration, however, sports betting revenue growth slowed.
When it’s easier to sign up, more bettors are willing to try sports betting. New York will benefit from allowing mobile sports betting and mobile account registration. With these mobile sports betting measures, New York is expected to grow into a major sports betting market.