Share 
The more operators, the lower the tax rate, it appears, for New York sports betting platforms bidding for a coveted spot in the state’s approaching mobile market.
That’s according to a “final tax rate matrix” that New York gaming regulators are reportedly asking platforms to match in order to stay in the running for one of the state’s upcoming mobile licenses. Tax rates to beat range from 64 percent for fewer than five operators to the lowest rate of 35 percent for 13 or more operators, with no change based on the number of platforms.
Mobile sports betting hopefuls now have four days, until close of business on Oct. 25, to amend their bids in order to meet required rates in the final tax matrix and stay in the bidding game.
At least two platforms and four operators will be licensed in the New York mobile market under state budget language that legalized New York mobile sports betting in April 2021.
The Intent Of The Pricing Matrix
The final tax rate matrix is based on the highest tax rates submitted by applicants bidding for a license under the New York State Gaming Commission (NYSGC) mobile sports betting RFA – all with the intention of netting the most state revenue possible.
The NYSGC made it clear on page 30 of the July 9 RFA that licenses would be awarded based “on factors designed to ensure maximized sustainable, long-term revenue for the state.”
Yesterday, in a letter to qualified applicants, the commission drove that point home.
State law “conditions the award of any license upon an agreement by each Applicant to ‘remit the highest percentage of gross gaming revenue from mobile sports wagering contained in an applicant’s bid selected by the commission considered for licensure,’’ the commission clarified.
What Does the Final Matrix Say About Possible Winners
Assuming that bidders willing to submit to the highest rates are ultimately licensed, New York’s winning mobile platforms could be matched with just four or five operators — enough to meet the letter of the law. That could be good news for some big-name sportsbooks that have joined together to apply for mobile licenses in the Empire State:
- FanDuel, Bally’s, BetMGM, and DraftKings applied together under the Betfair/FanDuel name to meet the minimum requirement of two platforms and four operators under the RFA.
- A similar strategy was used by Kambi when it applied in partnership with PointsBet, Wynn Interactive, Caesars, Rush Street Interactive, and Resorts World to enter the mobile market.
There are 14 operator hopefuls in the running altogether, 10 of which are also applying to be the mobile betting platform. The platforms and operators fall under six bidding groups that want to enter New York’s $1 billion-plus sports betting market in early 2022.
New York officials have said they remain hopeful for a mobile sports betting launch ahead of the 2022 Super Bowl. The NYSGC has set Dec. 6, 2021, as a tentative deadline for the selection of applicants considered for licensure, with mobile sports betting licenses possibly issued in New York by the end of this year.
