New York Advances Mobile Sports Betting Program

The New York State Gaming Commission selected nine companies as of Nov. 8—split into two bidding groups—that sometime early next year will begin offering mobile sports betting to consumers across the state, a market the state expects to grow to more than $1 billion in annual wagering in the future.

The 2021 law permitting the mobile betting does not include pari-mutuel wagering as among the pro sports contests open for bets, but industry officials say "shared wallet" methods will enable marketing of horse races on apps that will be offered by the new sports betting licensees in the state.

"Today's approval of the shared wallet is hugely positive news that will allow NYRA to engage with the new licensees to offer pari-mutuel betting on horse racing content,'' said Patrick McKenna, a spokesman at the New York Racing Association.

The state Gaming Commission selected two major bidding groups.

One of these groups are Sports Information Services, which conducts business as Kambi, with partners including Caesars Sportsbook, PointsBet, Rush Street Interactive, WynnBet, and Resorts World, who runs the casino at Aqueduct Racetrack and owns a casino in the southern Catskills.

The other major group is Betfair Interactive US, doing business as FanDuel Sportsbook, with skins that include Bally Bett, BetMGM, and DraftKings.

These companies will each pay the state $25 million in an upfront fee and a 51% state tax on gross gaming revenues, a level that will depress industry profits compared with other states. Still, the companies are given entry into a major sports betting state and lawmakers and governors could always, in the years ahead, lower the tax rates.

While consumers could bet on pro sports like NFL and MLB games, as well an non-New York based college contests, the law does not permit direct wagering on horse racing. However, NYRA believes it will contract with the nine different mobile sports betting licensees to have a place on their apps for consumers to seamlessly wager—called a "shared wallet" concept—on the NYRA Bets app.

State regulators Nov. 8 not only approved the two bidding group's licenses, but also okayed final regulations to implement mobile sports betting in the state, including the "shared wallet" concept.

Officials believe mobile sports betting systems could be available in New York in time for the Super Bowl next February, though a number of logistical hurdles will have to be met by then.