The New York State Gaming Commission has launched its request for applications for mobile sports betting platform providers, with potential bidders incentivized to offer the state a revenue share of 50% or more.
The launch follows the signing of Governor Andrew Cuomo’s FY 2022 budget in April this year, which included provisions to allow for legal mobile sports wagering in New York.
Rules set out at the time included a $25m license fee, and a bidding process under which potential licensees would be awarded points according to a scoring system in order to determine the strongest candidates for licensing.
The scoring system as set out in the request for applications states that up to 75 points are available for technical factors, including expertise in the market and the integrity and sustainability of the applicant’s platform.
An additional 5 points may be awarded for revenue-share agreements made with Native American tribes or nations, and the rate of taxation selected will provide the opportunity for platform providers to score more points during the process.
Tax rates will be determined based on the bidding process, but may not be set at lower than 12% of gross gaming revenue (GGR).
A tax rate between 12.5% and 30% will score applicants 3 points, whereas a 50% rate will see applicants gain 20 points. Additional points for each percentage point over 50% will also be awarded.
The tax rate selected will also determine the term of the license, with rates between 12.5% and 30% allowing for a 3-year license term, between 30% and 50% allowing for 5 years, and any tax rate at 50% or over granting a 10-year term to the licensee.
According to the state budget, licensees would also be required to house their servers in a New York Casino, and must pay the casino operator an annual $5m fee in order to do so.
While the budget set out that licenses would be issued to the two highest scoring bids as long as both licensees pay the same tax rate, the Commission may also license additional bids if they are satisfactory.
Each licensed platform provider may host multiple skins, but players would only be allowed to register an account with one skin from any given provider.
When the FY22 budget was signed, it was said that the Commission’s request for proposals would open no later than July 1, and that winning bids would be selected within 150 days of the process launching.
As the process officially launched on July 9, applicants will now have until July 16 to issue any first questions to the Commission. The response to these questions will be given by July 22, with second questions and responses taking place in the following two weeks.
Applications are due on or before August 9, and the selection of applicants considered for licensing will take place before December 6.