- New York is expected to announce several online sports betting operators this week, with the launch expected before Super Bowl 56.
- Once launched, the online operators will face the highest tax rate on online sports betting profits in the United States at 51%.
ALBANY, N.Y. – New York is expected to announce at least two operators this week to begin offering online sports betting.
The online legal sports betting industry should be up-and-running in New York by the time the Super Bowl arrives.
Expected to issue licenses to at least two groups: a group composed of BallyBet, BetMGM, DraftKings, and FanDuel; as well as a group composed of Caesars, Wynn Interactive, Empire Resorts, and Rush Street Interactive, there is also a third group, composed of rapper-turned-businessman Jay-Z, Fanatics, and Barstool’s Penn Sports Interactive.
It is unclear if the last group will be receiving a license, though the forecast is not good: a source familiar with the situation told the New York Post that “the Fanatics group has not gotten the same paperwork to sign this week as the two groups that appear to have been selected by the state — raising questions about whether the Fanatics group will get a license.”
Once launched, the legal New York online sports betting industry will have tied the highest tax rate on operators in the US, with an agreement in place for online operators to hand over 51% of sports betting profits.
The only other state with such a high tax rate on online sports betting operators is New Hampshire, who also take 51% of profits.
New York expects to receive approximately $10 billion in sports betting revenue once the industry gets up and running, bringing in potentially $1-2 billion in new tax revenue yearly.
The high tax rate may hurt sports bettors, though, as books will likely offer worse odds than their internationally-based counterparts in order to boost their bottom line. Another thing the high tax rate means for sports bettors is that none of the promotional offers sports bettors are used to are likely to be offered.
Free bets, deposit matching, and boosted odds are unlikely to be seen on New York sportsbooks that have to really watch their profit margins.
Jerad has been a welcomed addition to the LegalSportsBetting.com writing team. Covering topics regarding the expansion of sports betting in the US, Jerad focuses on legislative efforts, bill signings and other methods for sports betting legalization. Finishing his education as a college baseball player, Jerad has first-hand knowledge of competitive sports, paired with years of personal sports betting as well. As a political science major at the University of Central Florida, Jerad covers the political, legal, and legislative aspects of sports gambling without any issues.