New York Grants Mobile Betting Licenses
Online sports betting in New York got closer still with the announcement of the companies that are to be licensed in the state. FanDuel, DraftKings, Resorts World, MGM and Wynn all got the nod to acquire licenses to operate in the state that is expected to generate upwards of $1 billion a year in revenues and bring in some $490 million a year to state tax revenues by the year 2025 regulators said in the announcement.
This is a big deal for the mobile sports betting industry as it is expected to dwarf the already legal to bet in person sector.
On Monday the New York State Gaming Commission approved licenses valid for ten years to Rush Street Interactive, Caesars Sportsbook, Wynn Interactive, Resorts World, and PointsBet. The other group that won a license applied under FanDuel includes Bally’s, BetMGM, DraftKings and Kambi.
However it is not cheap to run a mobile sports betting platform as the state will tax 51% of the companies gross gambling revenue which is rather high compared to the average in other US states which is around 11%.
To gain a license it will cost $25 million for a one time license fee and it is expected that all license applicants that have been successful will complete the process by the beginning of January 2022 and going live before the big betting event of the NFL Super Bowl 2022.
