New York has had legalized retail sports betting over the last year, but mobile and online sports betting has been a sluggish process. A few months ago, New York approved online sports betting but laid out a less than friendly operator plan that makes them bid for access in the state. There is going to be a review process and grading system to see which operator provides the most value. The process has been in the dark up until now as the state had other needs to attend to, but there will be missed revenue opportunities for the upcoming NFL season. Bidding and review processes will take place up until December, where the commission will pick.
Applications can now be filled out for New York’s online betting platform, which will allow two platform providers and four sportsbook licenses. Operators must be able to sustain the usual betting tasks like taking bets, generating tickets, and submit reports. However, they must establish a wallet that can be used on all sportsbooks within that platform.
Expertise and integrity are going to make up most of the grading system for each operator, but advertising, new-customer growth, diversity, and state revenue will also play a factor. Operators can also get a bonus for having a tribal partnership, in which they have a revenue-share agreement in place.
Operators can also combine their bids together to achieve a higher points total, which is where the wallet would be needed to access both sportsbooks if any decision to pull together in a bid.
Unlike neighboring states and many legalized states in the United States, New York could have a limited market for sports betting. Gov. Cuomo didn’t limit the number of sportsbooks that could move in, but at this time, the bidding process will likely narrow out a handful. A lot will come down to revenue numbers and what’s in the best interest of the state.
For the public, a lack of options isn’t the greatest. That also could mean those who like a preferred sportsbook and live close to New Jersey can keep traveling over the line to access. If Gov Cuomo does award more operators in the state, it will benefit the public with more options.
Rest Of Year Timeline
There has already been a major delay in the bidding process, but now the gears are in motion. There is going to be a Q/A between the operators and state at the end of July, but bidding closes on August 9th. In-person presentations are scheduled to start in September, leading up to a deadline of finalists in December, where the commission will then pick.
Given most states that have legalized this year aim for the beginning of the NFL season, New York will miss out on revenue the longer they take to decide operators. They will still need to get up and running, so 2022 is where you will see them fully operational. The sluggish process hurt the chances of online betting in 2021.