New York eyes $1 billion sports betting market

The State of New York has taken another step towards opening up legal online sports betting. Just this week, licenses were approved for nine operators; a clear sign that bettors will soon be able to partake in online betting activities without having to cross state lines.

New York tennis stadium

 

There are over 30 states in the US that have legalized betting. The inclusion of the Empire State into the fold is an exciting development for the industry at large. It’s estimated that the market for sports betting in New York is valued at $1 billion per annum. Much of this can be attributed to the 20 million-strong population and the fact that sports is an integral part of the culture.

New betting licenses in effect

As mentioned, nine operators from two different groups have managed to attain legal betting licenses in New York. These licenses are in effect for 10 years and will enable operators to capitalize on market interest – starting as early as the Super Bowl in 2022. There’s significant demand for sports betting platforms from residents in the Empire State. IN-person sports betting has been legal for several years now. However, due to inaccessible or drawn-out commutes to physical betting spots, many New Yorkers find it easier to cross into New Jersey in order to place bets. The move to ratify legal mobile sports betting will mean that authorities can also ensure tax revenue stays in the state.

New York licenses come at a cost

It must be noted that the latest licenses come with a hefty price tag. The initial fee comes in at a whopping $25 million per license. This once-off fee is not the only cost incurred. Sports betting operators will also be required to locate their servers at an existing facility. The fortunate operators that are awarded after the new year must ensure that this part of the process is adhered to. Annual storage costs amount to $5 million and must be paid to the land-based casino in question.

Over and above these fees, state authorities are set to tax sportsbook operators at 51% of gross annual revenue. This is exponentially higher than the average tax rate across states – which comes in at 11%. The fact that keen interest is shown by operators, regardless of the costs associated with operating in the state, goes to show just how lucrative the market will be.

Mobile sports betting the way forward

Legal mobile sports betting is not as prevalent as you may think. There are only 17 states in the US that have legalized mobile platforms for betting. Thus, New York will be tapping into what is certainly the future of online betting. Mobile sports betting is the most convenient way in which individuals can access the latest betting markets and features. Interestingly, the latest move by state officials will also ensure that legal competition in the industry will only serve to push out illicit betting. Regulated operators will be able to redirect funds towards transparent platforms that certainly benefit state revenue streams, but also the end customer. It’s an exciting new chapter in the latest evolution towards a free, and legal, marketplace for online sportsbooks across America.

At PlayersBest, we are continuously on the lookout for new developments throughout the US. The online gambling scene has taken off and we follow all the latest changes and expansions with a keen eye. We’ll be sure to report back to you on a weekly basis so that you are up to speed. We’ll be back next week with more exciting news for you!

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