Zona de Azar USA – FanDuel, Kambi Win Coveted NY Mobile Sports Betting Licenses

USA.- November 9th 2021 www.zonadeazar.com Kambi and FanDuel will lead New York’s mobile sports betting market, with state gaming regulators approving a 10-year license for the bidders and their eight partners at a tax rate of 51 percent.

Selected for licensing by the New York State Gaming Commission (NYSGC) yesterday were:

Betfair Interactive US LLC, dba FanDuel, with operators BallyBet, BetMGM, and DraftKings
Sports Information Services, dba Kambi, with operators Caesars, Resorts World, PointsBet, Rush Street (BetRivers), and WynnBET
The NYSGC approved the licenses yesterday. An evaluation committee that recommended applicants for licensing reportedly also considered Bet365 for licensing, but decided against a third licensee after determining a bigger pool of platforms would drop the tax rate to 50 percent.

Out of the running altogether are Penn National, Fanatics, theScore, and Fox Bet.

“(We) could not support a finding that their licensing would increase the aggregate to the state,” the NYSGC staff said during the licensing announcement.

Next Steps for NY Mobile Sports Betting

The NYSGC said yesterday that the new licensees must ensure that servers are tested and ready before a launch can begin. Platforms and operators are working with four upstate casinos where the servers will be located to ensure that geofencing and other legal rules are followed.

New York mobile sports betting can launch once all legal requirements regarding licensing and the servers are met, although the NYSGC wouldn’t put a date on when that will be.

The expectation is that New York mobile sports betting will begin before the 2022 Super Bowl, if not before. The NYSGC has said it will step in and find an alternative location for servers if a casino and platform have trouble reaching an agreement.

Otherwise the NYSGC staff said, “It will be up to the bidders when they become operational.”

Could There Be More NY Operators Down The Road?
It’s hard to say if the NYSGC will add more platforms and operators at a later date. State law allows an unlimited number of platforms and operators over the two-and-four minimum respectively, but new legislation may be required.

The NYSGC indicated in its July 9 RFA for mobile sports betting that no more platforms or operators are anticipated after yesterday’s initial offering.

But Sen. Joe Addabbo, the state Sen. Racing, Gaming and Wagering Chair and a major force behind legalization of New York sports betting told Gaming Today last week that he’s reviewing state law as to what’s possible.

“Right after the gaming commission meeting, myself and my legal team, who are all reviewing it, we’re going to have a meeting. So I’ll reserve my statement until I speak to my legal counsel to see what’s in the jurisdiction of the legislation,” the Senator said.

Edited by: @MaiaDigital www.zonadeazar.com