Which Online Sports Betting Companies Will Operate in New York
Back in March of 2021, the state of New York made Online Sports Betting legal for its residents. However, the State Gaming Commission did not seek bids for mobile betting operators until earlier this month. Now that they are taking applications, the big question is Which Online Sports Betting Companies Will Operate in New York.
According to Bookie Pay Per Head websites, the State Gaming Commission is behind schedule by a week. This leaves potential online gambling operators one month to submit their bid to enter the New York online gambling market.
industry analysts believe that New York will not see a lot of bids to enter the NY only gaming market. This is because of the high cost of operating in New York. First off, obtaining a license will cost a one-time fee of $25 million. In addition, online sports betting operators will have to pay an annual $5 million fee to house their servers. And last, gambling operators will be paying at least 50% of their revenue to the state.
For most online gambling operators, this is a big risk because of the low profit margin. Therefore, only large operators will have an interest in entering the New York online gambling market. In all likelihood, only large companies like FanDuel, DraftKings, William Hill and so on will put in a bid. Unfortunately, it will leave smaller gambling operations like bookie agents who use a Pay Per Head Service.
Online Sports Betting Companies Will Operate in New York by late 2021 or 2022
Even though NY began taking applications last week, New Yorker will probably not be able to bet online until 2022. However, with a lot of luck, it is possible that at the earliest, online gambling will be available in December.
Let’s take a look at the timeline to see the likelihood of this happening. The last day for submitting a bid in New York is August 9. In addition, they said it would take about 150 days for them to review and award an online gaming license. Then, there is no specific timetable for actually issuing the license and getting the gambling platform.
If an online sportsbook receives a gaming license in late-November, it is still a challenge to be operating by December. This is because the online sports betting platform will have to undergo testing and of course, setting up the infrastructure. Until that day, New Yorkers will have to place their sports bet in person.