The New York Gaming Commission missed a July 1 deadline to release a request for application or RFA seeking bidders to operate the state’s online sports betting platforms.
The measure is part of New York’s budget legislation for 2021-22, which was passed by lawmakers in April. It includes a framework for setting up online sports betting along with a series of other deadlines for each step of the process. It’s unclear whether upcoming deadlines will now have to be pushed back.
The delay is bad news for New York, and it could see more local bettors crossing the Hudson to neighboring New Jersey where sports betting has been legal for years. Proponents of New York’s sports betting legislation aren’t hiding their disappointment.
“The fact that our state couldn’t meet its initial mobile sports betting deadline to take a positive step towards recognizing additional educational and anti-addiction funding is disappointing. I remain confident that in the end, New York will have a premier, top-shelf mobile sports betting product to offer,” said state Sen. Joseph Addabbo.
The Democratic senator from Queens, who has long championed expanding sports betting in New York, previously articulated his ambitious goal to have operators ready to take bets by next year’s Super Bowl.
Governor Andrew Cuomo was initially against the idea of expanding sports betting until last year when New York began exploring new revenue streams.
Interested parties submitting platform provider bids should include a minimum of four mobile sports operators. From there, the New York Gaming Commission will evaluate all the information relevant to the bid packages, including the tax rate it’s willing to pay, experience in the field, and the operator’s willingness to enter into revenue-sharing agreements with the state’s Native American tribes. The minimum tax rate is set at 13% for platform providers, even though the bidding process might get these percentages closer to the 50% range.
