This Week in Gambling: New York online sports betting set for failure?

This week we look at New York mobile sports betting, what they plan to charge operators and how the system could hurt players. New York online sports betting was only approved in April, and now the state is pushing it for every penny it's worth. Some fear that they are pushing their fees and taxes so hard that they are destined for failure.

If you are an operator wanting to offer New York mobile sports bets, get ready to pay a heavy price. After years of trying to pass legislation to allow the activity, the state of New York seems pretty proud of themselves. The cost for the privileged of serving players in the Empire State? How about $25 million up front for the license, and 50% (or more) in taxes on your gross revenue!

Additionally, the state would prefer to deal with operators who already have a revenue sharing agreement with a Tribal Gaming interest within the state, and that’s sure to cost the operator even more. This leaves us wondering (and I am sure many of you as well) how much profit will actually be left for the operators who take all the risk? And will the relatively large size of the state’s market be enough to overcome to exorbitant price tag.

After the initial question and answer period, those wishing to file an application for New York mobile sports bets will have until the 9th of August to do so. The New York Gaming Commission will select finalists by the 6th of December. New York online sports betting was finally signed into law by Governor Andrew Cuomo in April of this year.



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