New York online betting market launched with four operators

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The New York State Gambling Commission authorized four operators to launch the state’s online sports betting market on January 8.

The four licensed operators are Caesars Sportsbooks, DraftKings, FanDuel, and Rush Street Interactive (RSI, through the BetRivers brand).

New York’s gambling regulator approved online sports betting licenses for nine operators in November 2021 and the rest of the five operators (Bally’s, BetMGM, Wynn Interactive, Resorts World and PointsBet) will be allowed to operate. they meet the requirements of the state, as they have. been under conditional license.

Jason Robins, CEO, Co-Founder and President of DraftKings, said, “We are delighted to finally be able to bring DraftKings mobile and online sports betting to millions of New York sports enthusiasts. “

Richard Schwartz, CEO of RSI, also commented, “With the college football championship game on January 10 and the NFL playoffs approaching, and the NBA and NHL seasons are in full swing, in addition to countless other sports and games. betting options available to play, fans have endless entertainment right at their fingertips at BetRivers.

Of the 32 states that have legalized sports betting in the United States, only 18 have also legalized mobile betting. The legalization of online sports betting in New York is therefore important for the gambling industry.

Analysts at Macquarie (an investment banking firm) have suggested that the state’s online betting market will reach annual revenues of $ 1 billion and that annual tax revenue is expected to reach around $ 500 million. here the start of 2025.

In terms of taxes, sports betting will pay 51% of gross gaming revenue, which is extremely high for the industry compared to the median online sports betting tax rate in the United States (around 11%). The only other state with such a high tax rate is New Hampshire, according to Macquarie.

In addition to taxes, sports betting platform providers who obtained licenses had to pay a one-time license fee of $ 25 million.

Commenting on the launch of the online sports betting market, New York State Senator Joseph Addabbo said: January 8, 2022 is great news for New York in terms of revenue, new funding for education , drug addiction programs and youth sports, as well as new jobs.

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