On Wednesday, NY Governor Cuomo’s online betting proposal was officially approved as a part of the fiscal year 2022 budget.
However, not everyone is happy about it, including some proponents of mobile gaming legalization. The story goes that the accepted model differs from the one that’s widely supported among state lawmakers.
Instead of going with a free-market approach, New York will follow the lottery-like model. As a result, the state will allow only a limited number of online sportsbooks to operate.
Under the plan, two operators should be granted a license, with the option to subcontract them out, thus creating additional “skins”. The state would allow four skins in total at the beginning.
Who’s Getting the License?
The application process will start no later than July 1 and will finish within 30 days. Right after, the New York State Gaming Commission will start evaluating all the applicants.
Some of the most important requirements will include the applicant’s experience in the world of mobile betting, its GGR (gross gaming revenue) potential, and so on.
Two operators that get the highest marks will be awarded the licenses. They will have the option to subcontract the license to other operators in accordance with the Commission’s follow-up measures.
As per Cuomo’s online betting proposal, the companies that already have deals with Native American casinos will receive additional points. This means is that those operators that have been involved with tribal casino gaming in NY State will have an advantage over others.
Right now, there are three B2B providers of sports betting services that have already partnered up with NY-based tribal casinos. Those companies are Kambi, FOX Bet, and Caesars/William Hill.
New York’s First Online Sportsbook Could Go Live This Year
Cuomo’s online betting bill is designed in such a way that it should fast-track the licensing process. It states that the Commission will have to choose two providers up to 150 days after the end of the application process (August 1).
What this means is that it’s reasonable to expect the first NY mobile sportsbooks to go live in time for the 2022 Super Bowl. The biggest NFL game of the year is traditionally the event on which American bettors wager the most.
That’s why it’s in everyone’s interest that everything gets resolved by then. As a reminder, the next Super Bowl is scheduled for February 13, 2022.