NY Mobile Sports Betting Rules Given First-Run Approval

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Mobile sports betting rules have been given preliminary approval by the New York State Gaming Commission, setting the stage for final approval later this fall. 

The 60-plus pages of proposed regulations lay out rules for licensing, reporting, internal controls, wagers, accounting, server location, and all other aspects of mobile sports betting in New York. Final approval of the rules is expected following a 60-day public comment period starting this month. 

The NYSGC is currently reviewing applications from five companies vying to enter the state’s upcoming mobile market under six separate bids. The bids feature 10 potential platform providers and 14 potential operators in a $1 billion-plus market where a minimum of two platforms and four operators will be allowed. 

All mobile sports betting in New York, once operational, must be run on servers located in four upstate New York commercial casinos, although more casinos may eventually be added — probably downstate — per a 2013 constitutional amendment. 

The Sports Betting Server Question

New York mobile sports betting servers will be located at the state’s four upstate commercial casinos: Resorts World Catskills, Rivers Casino Schenectady, del Lago, and Tioga Downs. 

Which casino is the location of a particular server will be up to the commission to decide. How that server is handled once in the casino will be pretty standard, per the proposed rules which require the following of platform providers and their skins, at a minimum: 

Platform Providers

  • Must be able to accept and register all sports wagers, generate electronic sports wagering tickets, compute bets and payouts, maintain sports wagering activity records,  keep all data secure,  and maintain transactional data for up to five years. 
  • Must provide ready access to each authorized sports bettor’s own transactional sports betting data within 10 days of a request, at no cost to bettor.
  • Must create a sports betting “wallet” that authorized sports bettors can use across all skins in New York related to that platform provider. 

Operators

  • Create public-facing markets and odds for display to any authorized account holder with that skin
  • Guarantee payment of winning sports bets
  • Offer a way for an authorized sports bettor to create daily, weekly, or monthly deposit limits
  • Limit each authorized sports bettor to one account per skin
  • Prohibit anyone under age 21 from mobile betting on sports. 
  • Maintain security of bettors’ accounts and information, using minimum standard encryption

Platform/Operator Selection — A Refresher

Right now, the NYSGC is evaluating bids for New York mobile sports betting. The commission spelled out in its July 9 RFA how the ranking process for selection of mobile sports betting platform providers and operators in New York will proceed, with detailed coverage in Gaming Today:

  • Qualified applicants will be ranked initially by the sum of their Technical Factor score and the 5-point Bonus.
  • Qualified applicants with the highest initial ranking that are bidding for at least two platform providers and four operators will be further vetted based on pricing considerations. 
  • Qualified applicants with the highest initial ranking bidding for fewer than two platform providers and four operators will be vetted from a larger group of qualified applicants.

When at least two platform providers and four operators have been identified, the state will compare each applicant’s pricing matrix. The highest tax rate for each scenario in the matrix will be recorded, placing those applicants in the pipeline for final selection. 

New York is expected to select its mobile sports betting applicants considered for licensure by Dec. 6, 2021. Licenses would then be tentatively awarded at the NYSGC’s next meeting — hopefully by kickoff of Super Bowl LVI on Feb. 13. 

About the Author
Rebecca Hanchett

Rebecca Hanchett

Writer and Contributor
Rebecca Hanchett is a political writer based in Kentucky's Bluegrass region who covers legislative developments at Gaming Today. She worked as a public affairs specialist for 23 years at the Kentucky State Capitol. A University of Kentucky grad, she has been known to watch UK basketball from time to time.

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