The New York State Gaming Commission has approved nine online sports-betting operators for licenses, including DraftKings, FanDuel, Bally Sports, BetMGM, PointsBet, Caesars, WynnBet, Kambi and Resorts World.
The Monday announcement by the state’s gaming commission allows for those approved operators to accept online and mobile bets, which are currently not allowed in the state. New Yorkers are only legally allowed to place sports bet in-person at four casinos in upstate New York.
Bally Sports is the sports-betting and media division of Bally Corp.
BetMGM is the sports-betting division of MGM
Wynn Bet is the online division of Wynn Resorts
and FanDuel is owned by Flutter Entertainment
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“We’re pleased to share that BetMGM has been granted a license to operate mobile sports betting in New York, a state vital to ensuring nationwide leadership in sports betting and iGaming over time,” Adam Greenblatt, CEO of BetMGM, said in a statement. “We would like to thank the New York Gaming Commission as well as congratulate them for keeping to their timetable.”
Greenblatt added that he believes “New York has the potential to be one of the largest sports-betting markets in the U.S.”
Companies that submitted bids that were not approved by New York include Fanatics Inc. and Penn National Gaming
which operates Barstool Sports’ online casinos. Unapproved operators cannot take bets in New York until they have obtained a license.
The approved sports-betting operators will have their revenue from New York taxed at a 51% rate, the highest of any state in the U.S. where sports betting is legal.
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In April, then-Gov. Andrew Cuomo approved a budget for fiscal-year 2022 that included legal online wagering, paving the way for legal mobile betting in New York.
In New Jersey, one of the states with the biggest sports-betting markets, about 90% of all bets are placed online. A recent report indicated about 20% of New Jersey sports wagering comes from New York City.
There is no firm launch date for when mobile wagering will begin in New York, but some analysts from Legal Sports Report believe it could start by February 2022.
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Sports-betting stocks were mixed after the announcement as shares of DraftKings
gained 2.66% on Monday, Caesars
fell 1.11%, MGM Resorts slid 3.63%, Wynn Resorts dipped 2.14% and Penn National Gaming sank 4.49%, compared to a 0.09% gain for the S&P 500
The Roundhill Sports Betting & iGaming ETF
a tier-weighted index of global sports betting & iGaming companies, fell 1.25% on Monday.