It has taken a long time, but New Yorkers can finally make the most of their sports betting endeavors after licensing nine sports betting providers. In doing so, they opened the state door to online sports betting for the first time.
The move makes the state the 19th state to legalize mobile gambling, and it’s a decision that has the potential to generate a lot of income. Some experts estimate that revenue is up to $1 billion a year, and the big winners, in this case, are the ones who secure the rights to those important licenses.
When it comes to domestic sports betting, states where sports betting is legal in the US now up to 33, but the number of people who can provide this service on mobile devices is significantly lower. This is the key difference as a lot of betting takes place on mobile these days and New York’s decision to allow this is sure to have repercussions across the US.
There is no timeframe on when the legislation will be passed, but many vendors will be hopeful everything will be in the right place long before Super Bowl 2022, which takes place in California on February 13.
The nine licensed operators include DraftKings, Bally Sports, BetMGM, PointsBet, Caesars, WynnBet, Kambi, FanDuel and Resorts World.
All those who have been licensed will certainly be looking for a big boost in revenue, and that’s a big deal, to say the least, and one for which each company is grateful;
“We are pleased to announce that BetMGM has been licensed to operate mobile sports betting in New York, a state critical to ensuring our national leadership in sports betting and iGaming over time. time,” Adam Greenblatt, CEO of BetMGM, stated. “We want to thank the New York Game Commission and congratulate them on keeping their timetable.”
However, the providers have no way of making it their own, with New York imposing a whopping 51% tax on the sports betting revenue they generate. This is seen by many as an obstacle, but some, including DraftKings CEO Jason Robbins, is ready to make the necessary changes to their operations to make it all work in their favor;
“There are a lot of levers that we can pull, such as cutting ad rates and spending less on external marketing. That’s what I expect everyone in the industry to do because I don’t think anyone is going to want to run at unprofitable rates long term in any state. Sure, early on, we’re going to approach it like we do in other states, where we’re going to invest in it and look for a two to three year path to profitability.”
Sports betting is already legal in the state of New York, although there are many casinos in the state, all a long distance from New York City, which is, of course, the largest city in the area.
The neighboring states of New Jersey and Pennsylvania already offer online sports betting, but New York is sure to challenge those two states in the coming years in terms of the money it generates.
https://filmdaily.co/lifestyle/ny-sports-betting/ New York approves nine operators for live sports betting in the state – Film Daily