Legalized online sports betting is coming to New York quicker than expected, with four sportsbooks going live Saturday morning.
New York first legalized sports betting in 2013 but limited action to casinos. A federal case in 2019 expanded betting to retail sportsbooks, but now New Yorkers will be able to place a wager in the palm of their hand or computer.
This weekend’s launch in New York follows an agreement reached in April to allow online sports betting in the state, but through a model that is lottery run and limits the number of sportsbooks.
- Each operator is required to pay a 51% tax rate to the state for 10 years.
- State tax revenue could reach $500 million by 2025, per comptroller Thomas DiNapoli.
- Online sports could potentially make up 90% of New York’s betting handle.
Stiff Competition
A group formed by DraftKings, BetMGM, Bally’s, and FanDuel was approved in November for sports betting licenses, while another group that included PointsBet, Caesars Entertainment, Wynn Resorts, Rush Street Interaction, Resorts World, and Kambi Group also won its bid.
DraftKings, FanDuel, Caesars, and BetRivers will be the first four sportsbooks to go live.
Fanatics, Penn National, Fox Bet, and bet365 were among operators who failed to receive approval for licenses in the state.
With more than 20 million residents, New York will become the largest online sports betting market in the U.S.
