New York’s nine mobile sportsbook operators could soon have more competition in what has become a record-breaking market for sports betting apps.
At least 16 mobile apps, up from the current nine, would be possible in the state by 2024 under legislation (A08658) sponsored by New York State Assembly Racing and Wagering Chair J. Gary Pretlow and referred yesterday to Pretlow’s committee.
Pretlow, a Mt. Vernon Democrat, helped negotiate the legalization of mobile sports betting in this fiscal year’s budget and has been a key player in casino, sports betting, and racing issues in New York for at least a decade.
The number of potential apps would initially increase to 14 by Jan. 31, 2023. Applications for new operators would be accepted starting no later than Sept. 1 of this year, according to the bill, with an edge given to apps with minority-owned investment.
Any operator not awarded a license during the 2021 mobile licensing round would be encouraged to reapply.
More Apps, With A Graduated Tax Rate
What’s more, New York could move beyond 16 potential mobile sports betting apps under Pretlow’s bill, if the New York State Gaming Commission thinks more operators are necessary. The more apps, the lower the proposed tax, with the tax rate for all nine current operators staying at 51 percent.
Once the number of operators increases to between 10 and 12, the tax rate would fall to 50 percent. It would continue to fall as more operators are licensed, leveling off at a rate of 25 percent for 15 or more licensed operators.
Each platform provider (the actual licensee) would also be required to pay a one-time fee of $25 million. Each operator would have to pay a fee of $50 million.
This story will be updated as more information is available.
Also read: What Does 51% Sports Betting Tax Rate Mean For New York Bettors?
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