Eight-day delay
The New York Gaming Commission (NYGC) has released Requests for Applications (RFA) for online sports betting licenses in the state. This quells concerns from notable industry stakeholders about possible delays to the application process.
the NYGC will choose at least two platform providers and four online sports betting operators
Friday’s release of the 130-page RFA came eight days after the initial mandatory state deadline of July 1, starting the competitive bidding process among sports betting operators. The NYGC will choose at least two platform providers and four online sports betting operators to partner with in the region.
Scoring criteria for applicants
One of the biggest takeaways from the RFA document is that it appears New York Governor Cuomo’s aim to have a sports betting tax floor of at least 50% is likely on the way. The document states: “An Applicant must provide a tax rate that is fifty (50) percent or greater for its Preferred Scenario.”
Also as part of the document, the commission outlined the way in which it will be scoring the applicants during the proposal process. One of the main technical factors under consideration will be the experience that the platform provider has in the US sports betting market to date. Other key considerations will be the safety, sustainability, and integrity of an online sports betting platform, marketing strategy, as well as other relevant experiences of the operator.
Launch timeline
With the release of the RFA on Friday, the 30-day period that interested parties have to submit an application to the NYGC begins. After the application period closes in early August, the commission will need to announce the successful platform providers and online sports betting operators within 150 days of receiving the last application.
According to the NYGC, the selection of applicants is due by December 6, 2021. The NYGC might require certain amendments from bidders before they consider their final submissions. Any amended applications have to be submitted no more than one week after the applicant has received notice from the NYGC.
Among the major names in the sports betting space that are set to submit their applications in the next few weeks include Caesars, BetMGM, FanDuel, and DraftKings. When the market matures, legal online sports betting in New York could generate as much as $500m annually in tax revenue.