Among the applicants are FanDuel, which plans to offer products from rival operators BallyBet, BetMGM and DraftKings, while fellow Flutter-owned brand Fox Bet has also submitted a bid of its own with no other partners.
Kambi has submitted two applications; one in which it would partner with Fanatics Sportsbook and Penn National Gaming, and another in partnership with Caesars, Resorts World, PointsBet, Rush Street Interactive and WynnBet.
TheScore, which recently agreed on an acquisition by Penn National Gaming, and UK-based online betting giant Bet365 have also submitted bids, offering only their own products.
In addition to a US$25 million licence fee, the state also put a points system in place to judge the strength of applications. Licenses will be granted to the two highest-scoring bids, provided they both agree to pay the same tax rate. The Commission may also license additional bids if they are deemed strong enough.
The rate of taxation selected will be a major factor in how platform providers score points during proceedings, with incentives to offer more than 50% of revenue to the state.
A tax rate between 12.5% and 30% will score applicants 3 points, while a 50% rate will see applicants win 20 points. Additional points for each percentage point over 50% will also be awarded.
Furthermore, the selected tax rate will also determine the term of the license. Rates between 12.5% and 30% warrant a 3-year license term, between 30% and 50% allows for 5 years, and a tax rate at 50% or over ensures 10-year term to the licensee.
Up to 75 points may be awarded for technical factors such as expertise in the market, in addition to the integrity and sustainability of an applicant’s platform.
An extra 5 points could be awarded for revenue-share agreements with Native American tribes or nations in the state.
Governor Andrew Cuomo, that this week resigned from his position as he has been accused of sexual harassment, signed off on New York’s budget in April, which allowed provisions for the legalization of sports betting within the state, but through a procurement process rather than open licensing.
Source: iGB North America
