Gov. Cuomo signed the state budget bill for 2022, which includes online sports betting. The state voted earlier this month to allow online gambling, making it the latest state to do so after the Supreme Court’s 2018 decision to legalize sports betting.
New York doesn’t expect to start taking legal bets until next year, but State Sen. Joseph Addabbo Jr. expects the first bets to start being made on Feb.13, 2022, the Super Bowl day. As he puts it, “you don’t want to miss out on another Super Bowl.”
When it comes to collegiate sports, bettors will be allowed to bet on any games and tournaments held in the state. However, this is as long as no New York college participates in them.
State leaders will select two online platform providers 150 days after receiving all applications from interested parties. New York expects to request bids by July 1st at the latest.
The State Gaming Commission will look into the bidders’ revenue, past experience, willingness to work with Native-American tribes, the timeline of potential operations, and other factors. Moreover, the tax rate is set at 13% but could increase.
The winning platforms will have to pay a one-time payment of $25 million to host online sports betting, and they will have to be a part of a New York casino. The platforms will also have to pay $5 million annually to house their servers in said casinos.
Neighboring New Jersey and Pennsylvania are among the states that have already allowed online sports betting, and many people are crossing the state’s borders. New York wants to keep that money within its borders.
After the Supreme Court’s 2018 decision, New York opened physical casinos in 2019. The online gambling and betting industry is set to reach $100 billion by 2026, and New York is the latest state looking to reap the benefits.