New York State Gaming Commission chooses online sports betting license

After months of deliberation, the New York State Gaming Commission has reportedly made a final recommendation on who should get the first couple of decades of general online betting licenses in the eastern state.

According to a report on casinoudendansklicens.org, it is reported that New York regulators have approved an application for a local online sports betting license from a consortium consisting of FanDuel Group, DraftKings Incorporated, MGM Resorts International and Bally's Corporation. At the same time, the regulator allegedly recommended a second permit to an alliance consisting of Caesars Entertainment Incorporated, Wynn Resorts Limited, Rush Street Interactive Incorporated, Genting Malaysia Berhad and a subsidiary of PointsBet USA, the Australian online sportsbook operator PointsBet Holdings Proprietary Limited.

Remote Relief:

New York City is home to more than 20 million people, but has reportedly generated only a few million dollars in aggregate turnover since retail sports betting was legalized in June 2019. Proponents of launching online operations allegedly believe that up to 90 percent of sports betting in the Empire State could eventually be conducted remotely and generate up to $500 million in taxes annually.

Soccer first:

While some industry observers speculated that the licensing process could drag on into the New Year, this week's recommendations reportedly mean that winning firms will be able to begin online operations in New York in time for Super Bowl LVI on Feb. 13. In addition, the source explained that all nine winning firms will be allowed to create separate brands of remote sports betting, colloquially called "skins," as long as they agree to pay 51% tax on gross income.

Casino State:

New York State Senator Joe Addabbo said a possible launch date would likely depend on applicants' ability to place their computer servers at one of the state's four commercial casinos, which include Resorts World Catskills, Rivers Casino and Resort Schenectady, Tioga Downs Casino Resort and Del Lago Resort and Casino. Current rules allegedly mandate that all incoming online wagers be routed through such units to meet New York's legal definition of on-site casino gambling.

Required Recording:

To further complicate the timeline, the source said none of the nine operators will be allowed to begin offering online sports betting until the regulator publishes its final recommendations in an official registry. The New York State Gaming Commission allegedly hopes to submit those recommendations by Thursday, which means they won't go into effect until at least Nov. 24.

Contenders to win:

Nevertheless, the New York State Gaming Commission's announcement was a blow to Penn National Gaming Incorporated, which is responsible for online sports betting brand Barstool Sports, and licensed sports paraphernalia giant Fanatics, as the duo additionally teamed up in hopes of getting one of New York's licenses. Other disappointed contenders include European giant Bet365 Group Limited, as well as Canadian innovator Score Media and Gaming Incorporated and the FoxBet brand of London-based gambling company Flutter Entertainment.