NY Online Sports Betting Applications Due as Sportsbooks Pursue Mobile Access

• Applications for online sports betting in New York are due on August 9 by 4:00 pm ET
• The state will grant licenses to two platform providers and a total of four online sportsbooks
• Despite this progress, mobile NY sports betting won’t be ready for NFL kickoff

Sportsbooks looking to get their foot in the door for New York online sports betting must submit their applications to the New York State Gaming Commission by 4:00 pm ET today. Online sports betting in the Empire State is still moving slowly. However, we’ll get a better picture of what the mobile betting market will look like when it finally launches.

DraftKings and FanDuel are expected to be the frontrunners to secure mobile access here. Today’s proceedings could provide more clarity on these expectations. Both sportsbooks already operate retail locations in New York. As two of the leading betting sites in the nation, they would turn New York into a sports betting hotbed with their fantastic mobile apps.

Questions Answered as Mobile Betting Bids Are Submitted

The New York State Gaming Commission is ready to start accepting applications after a total of four rounds of Q&A on the Request for Applications (RFA). The RFA was delivered eight days later than expected on July 9. However, it outlined the bidding process as well as possible tax rates for operators in the state.

The state of New York is looking for platform providers willing to be taxed at least 50 percent of their revenue, plus $25 million in licensing fees. This may seem steep, but successful applicants will receive a 10-year license to operate in a booming sports betting market. Despite the eight-day delay in delivering the RFA, the state is going to hit its target of accepting applications by August 9, 2021.

The bidding process will award points to applicants based on how much tax the platforms are willing to pay. Bids offering a 50 percent tax rate will earn the sportsbook a total of 20 points. It could possibly be more if they’re willing to go up to 60 percent. Any proposition offering less than 50 percent in tax is unlikely to be approved by the state.

DraftKings, Other Sportsbooks Pursue Licenses

As per state law, the New York State Gaming Commission will accept two platform providers and at least four online sportsbooks. The platform providers will control mobile betting infrastructure like software and ultimately dictate agreements with each of the four operators. These operators will offer mobile sports wagering to bettors in New York. And while they plan to get at least four sportsbooks online, there could be more in the future.

REMINDER: All bid packages for New York online sports betting licenses are due to the New York Gaming Commission today.

So, if these companies are like me when I was in college they'll start putting their bid packages together around 10 p.m. tonight.

— RLinnehanXL (@RLinnehanXl) August 9, 2021

DraftKings has already confirmed they’re pursuing New York market access with an official application, and there’s little doubt the monarchs of sports betting will make it through this round. DraftKings CEO Jason Robins confirmed the company’s desire to go online in New York during a recent shareholder’s report. He stated, “We are prepared to respond in a fulsome and timely manner. We look forward to the potential of offering mobile sports betting in New York.”

Online Sports Betting Still a Ways Off in the Empire State

While this news might have sports bettors in New York jumping for joy, they shouldn’t expect mobile betting to arrive too soon. There was hope earlier in the year to have online betting ready for NFL kickoff. But that’s simply not a realistic deadline at this point.

Once the bidding process closes at 4 pm ET on August 9, the New York State Gaming Commission will take a month to review the applications. Some applicants might be asked to give a further presentation highlighting their bid starting September 1. Successful applicants must be selected by December 6, 2021. While the selection process could end before December 6, there’s virtually no chance mobile sports betting goes online in New York before the start of the NFL season.