The once-startup turned micro-betting platform Betr is already operating in Ohio and Massachusetts with some success. So far, Betr has been content to use differentiation as its strength, building on the microbetting model. But, there is indication that in subsequent states, Betr may also offer more traditional sportsbook features side-by-side with in-play betting offerings.
The operator is planning launches in several states following a recent round of fundraising that raked in $35 million. But, the New York sports betting market is a different animal.
What does Betr need to do to launch in New York? And when may New York sports bettors be able to use the social media-driven app co-founded by professional boxer Jake Paul?
NY sports betting licensing steps for Betr
New York is the most expensive state to do business in for a sports betting operator. Applicants are required to pay a one-time license fee of $25 million. The tax rate on revenue is 51%, the highest rate in any jurisdiction in the United States. That figure could drop to 25% if the state licenses as many as 15 operators.
Any applicant wishing to acquire a sports betting operator must deal with the New York State Gaming Commission, which regulates the industry. The process involves paying an application fee, providing detailed financial and background information on all key persons in the company, and complying with all requirements for operating a sports betting app. Typically, a provisional license is granted, and the sportsbook must perform a test run of its betting platform.
New York might be more than Betr wants to take on as it slowly enters the market space. Earlier this year, DraftKings NY CEO Jason Robins pointed out that his company may need to resort to “draconian” measures to remain viable in the Empire State. Five months into 2023, it’s worth noting that New Jersey’s sports betting market is growing at a faster rate than New York’s, despite the latter being much larger.
Currently, there are nine licensed sports betting operators in the state. One of them, Bally Bet, suspended operations while it rebuilds its platform ahead of an eventual relaunch.
Betr would need to matriculate the steps necessary to become licensed in a huge sports betting market. Last month, New York reached $25 billion in sports bets faster than any state in history. It’s also topped $1 billion in historic tax revenue, becoming only the third state to do that, and in less than 18 months.
Paul and investors are pouring support into Betr
Dubbing itself the “world’s first microbetting site,” Betr was launched in 2022 with funding from Paul and co-founder Joey Levy. The aim of the venture was to “reinvent the sports landscape,” according to Paul, a one-time social media influencer turned boxer.
In two series of funding, Betr has acquired investments to support its efforts to launch a sports betting app in several states. While only active in Ohio and Massachusetts, the company is reportedly applying for licensing in others. Whether it will bring its unique product to New York remains to be seen.
Microbetting is a form of sports betting that allows customers to wager on small events within an overall sporting event. For example, one can bet on whether the next pitch in an MLB game will be a ball or a strike. Or place a bet on whether Player X will be the next athlete to score a touchdown in an NFL game.
Betr uses cash alternatives called “coins” to allow its customers to place in-play bets within the Betr app. Those coins can be earned through play or purchased. The Betr coins can be redeemed for cash or prizes.
New York has not yet licensed a sports betting app that solely emphasizes live betting. The state is seeing dominance from market leaders FanDuel NY and DraftKings NY. In June, the two sportsbooks combined to handle more than $900 million. As a whole, operators in New York took in $1.16 billion in bets.
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