New York opens bidding process for mobile sports betting operators

The bidding process for prospective online sports betting operators in New York has officially begun after the New York State Gaming Commission released its request for applications (RFA) on July 9, eight days after it was originally scheduled to drop.

The RFA outlined the parameters – in concert with a corresponding point system – applicants are expected to meet in order to be granted one of the minimum two platform provider licenses and four sportsbook licenses available.

Applicants have until August 9 to submit their proposal, after which the Gaming Commission will have 150 days to select the winners. Finalists will be chosen by December 6, with licenses formally awarded by January 6, 2022.

Potentially the most distinguishing factor for applicants will be their proposed rev-share model, with the RFA stating an applicant “must provide a tax rate that is fifty (50) percent or greater for its Preferred Scenario.”

The license term will also be impacted by the tax rate on an escalating scale: three years for 30% and below, five years for 30% to 50%, and 10 years for 50% or higher.

Among the other elements that will be scored as part of determining a qualified applicant are sports betting expertise in the market, platform integrity, sustainability and safety, past relevant experience on both the platform provider and operator side, and advertising and promotional plans.

Any existing tribal partnerships will provide an additional boost.

While the RFA doesn’t outline any firm timeline for the launch of mobile sports betting, the stated goal of lawmakers throughout the legislative process has been next year’s Super Bowl, which is slated for February 13, 2022.