New York Tax Rate Information Available for Providers, Operators

New York Tax Rate Information Available for Providers, Operators
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Operators looking to enter the New York sports betting market will now have to meet the New York Gaming Commission’s latest tax rate that has been set.

Bidders for a New York sports betting license will have until 5 p.m. on Monday to meet the tax rate matrix provided by the commission. According to a statement from the commission, “any applicant declining or failing to amend its application to reflect the final tax rate matrix will be disqualified.”

Once applicants show proof of matching the pricing matrix amendments, the evaluation committee will undertake the additional license consideration process. Only after this process has been completed can the evaluation committee then recommend an applicant as a platform provider or operator.

Tax Rate

The tax rate matrix is based on between 1-15 platform providers and 1-25 operators. The highest tax rate would be 64% with 4-5 operators and 2-15 platform providers, while the lowest rate of 35% would occur with more than 13 operators and 2-15 platform providers.

Dec. 6 is the latest the state must decide who will receive mobile sports betting platform licenses. The licenses could be issued at the next commission meeting, but no date has been set for the meeting. Once the process has been completed, the committee can recommend an applicant or applicants for licensing as an operator or platform provider.

Six Applicants in New York

Six applicants have applied for licenses in New York. One of the groups has emerged with multiple name brands, such as DraftKings NY, BetMGM NY, Bally’s and FanDuel NY.

All four have submitted bids to become a platform provider and aim to launch as an operator in the state under their own name. In its summary of its proposal, the group noted it’s an “all-in-one package” for the state that cancels the commission’s committee to give bids to “any other proposals.” The Buffalo Bills, Buffalo Sabres, MLS’ NYCFC, New York Yankees and the YES Network are also partners in this bid.

Another bid comes from platform provider Kambi, which includes Caesars NY, PointsBet, Resorts World Catskills, Rush Street Interactive and WynnBET. In addition to this bid, Kambi has another with Fanatics and Penn National Gaming’s Barstool Sportsbook.

The other three bids are from theScore, FOX Bet and bet365.

The New York State Gaming Commission will select a minimum of two platform providers and four operators but can choose more. New York seeks to generate at least 50% of gross gaming revenues from mobile sports wagering.

If the state decided to go with the supergroup of DraftKings, BetMGM, Bally’s and FanDuel, it could also pick the one from Kambi, giving the state seven to nine operators with a tax rate between 51% and 60%. With all 14 sportsbooks, the tax rate would decrease to 35%.

If the commission decides on operators and platform providers before Dec. 6, mobile sports betting could go live before the Super Bowl on Feb. 13. The Super Bowl has been a target launch date for state lawmakers.