The winning online New York sportsbooks could be picked as early as this week, according to a report from the New York Post.
Companies involved in the bidding have been extremely tight-lipped, but this is not the first piece of news to trickle out. The final tax rates were reported by The Buffalo News two weeks ago, and later confirmed by state regulators.
According to the Post‘s story, there will be two winning bids that are taxed at 51%. Those are the so-called super bids that much of the industry expected to see licensed:
- Bally Bet, BetMGM, DraftKings Sportsbook and primary applicant FanDuel Sportsbook.
- Caesars Sportsbook, PointsBet, Resorts World, Rush Street Interactive, WynnBET and primary applicant Kambi.
Online NY sportsbooks should be live before the Super Bowl, according to the Post.
Other online New York sportsbooks coming?
Another bid including Penn National‘s Barstool Sportsbook and Fanatics on Kambi’s platform could be on the outside looking in.
Fanatics, which is taking steps to build out its sportsbook business, did not receive the same paperwork as the expected winning bidders, the Post reported.
The New York State Gaming Commission can approve as many bids as they want as long as it makes fiscal sense. Basically, if a bid is approved, it is because it will lead to additional tax dollars. While nine operators would be taxed at 51%, adding two more would only drop that rate to 50%.
That is a difference of $10 million if total operator revenue hits $1 billion annually. Platform providers pay a $25 million fee for the initial license, though. Between the exclusive bets from Barstool and Fanatics’ promise of “aggressive expansion,” the two would likely expand the market instead of cannibalizing it.
Fanatics specifically picked New York as the first market for its Fanatics Sportsbook to launch, a source told PlayNY.
Do not expect many promos
The Post‘s story also included a word of caution for bettors waiting a sweet sign-up promotion:
“We won’t see any free bets,” the source said.
That might be a bit of a stretch. Online New York sportsbooks will still have to compete for customers, and not just against the other NY operators.
New Jersey already home for some
Plenty of New Yorkers are already comfortable with betting at NJ sportsbooks. Online CT sportsbooks just launched as well with 38% of the volume in the first week coming from the southwest corner of the state.
There are certainly markets that do not see heavy promos, though that is typically based on exclusivity. DraftKings Sportsbook typically does not include New Hampshire in its nationwide promotions because it holds a monopoly in the state. Sports betting in Florida launched this week but the sole operator, Hard Rock Sportsbook, is offering just $100 in risk-free bets.
New York sportsbook operators will have to find a balance between not overextending themselves because of the expensive cost of doing business, while also attracting enough business to make their efforts worthwhile.