Despite being opposed to the idea for years, the impact COVID-19 closures have had on the state budget call for revenue to come from all possible sources. But, Governor Cuomo has announced he’d like to have a single operator marketplace like the state lotto, rather than doing it through the state casinos.

This is unlike the bills that Senator Joseph Addabbo and Assemblyman Gary Pretlow filed in the state legislature. Senate Bill 1183 and Assembly Bill 1257 are the exact same and would require online sportsbooks in New York to tether to a retail casino similar to how it works in New Jersey.

The State Assembly did include mobile sports betting within the New York fiscal budget in March, pointing to favorable signs that a bill will be passed this year.

They passed the budget under the assumption that Governor Cuomo would get his way and only two online sportsbooks would be permitted to do business by partnering directly with the state lottery.

This all but guarantees that the state legislature will pass a bill legalizing exactly that. In the meantime, the New York State Gaming Commission has already started to work on the required regulatory processes needed for a successful launch sometime in late 2021 or early 2022.

The Commission has since revealed that it is on target to meet its July 1st deadline for opening the application/bidding process. On that date, the Commission will start accepting bids from operators aiming to be one of the two state-licensed betting platform providers in New York.

The Commission will accept bids for a period of 30 days before then taking a further 150 days to select the winning bids. Any operator applying for an online sports betting license will need to run their online apps and services through the state-licensed platforms.

Platform providers can also serve as a sports betting operator. That means that if a supplier such as William Hill were to become a platform provider, the company could also run an online sportsbook of its own in the state.

The minimum tax rate set for platform providers is 13%, but this is expected to rise in the bidding process. In fact. Governor Cuomo has intimated that he expects the rate to jump to around 50%.

Once the bidding process and all other regulatory measures are in place, the state hopes to launch in early 2022 although Senator Joseph Addabbo has suggested that sportsbooks be allowed to take some bets in late 2021 to ensure that there are no hiccups on the official launch date.

The Governor hopes that the official launch date will be some time ahead of the Super Bowl on February 13th, 2022.

Offshore sports betting apps jump ship

2021 also saw some offshore betting apps remove their services from New York State.

Bovada announced in late May that it would cease its New York sports betting operations on June 21st. The company made the announcement to its players registered in New York via email saying that all futures bets for events after June 21st would be refunded. Bovada’s sister site, Cafe Casino has also opted to cease offering its services within the state.

The company has stated that it has decided to leave the state due to newly introduced restrictions on players within the state. It’s believed that Bovada along with other offshore betting sites currently accepting wagers from New York residents may face legal action once the state’s licensed operators launch. This is highly likely as the state will no doubt look to protect tax revenues from licensed mobile sportsbooks.

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In a shocking turn of events, Governor Cuomo announced at his state of the state address in January the support of legal recreational marijuana and online sports betting in New York.

Despite being opposed to the idea for years, the impact COVID-19 closures have had on the state budget call for revenue to come from all possible sources. But, Governor Cuomo has announced he’d like to have a single operator marketplace like the state lotto, rather than doing it through the state casinos.

This is unlike the bills that Senator Joseph Addabbo and Assemblyman Gary Pretlow filed in the state legislature. Senate Bill 1183 and Assembly Bill 1257 are the exact same and would require online sportsbooks in New York to tether to a retail casino similar to how it works in New Jersey.

The State Assembly did include mobile sports betting within the New York fiscal budget in March, pointing to favorable signs that a bill will be passed this year.

They passed the budget under the assumption that Governor Cuomo would get his way and only two online sportsbooks would be permitted to do business by partnering directly with the state lottery.

This all but guarantees that the state legislature will pass a bill legalizing exactly that. In the meantime, the New York State Gaming Commission has already started to work on the required regulatory processes needed for a successful launch sometime in late 2021 or early 2022.

The Commission has since revealed that it is on target to meet its July 1st deadline for opening the application/bidding process. On that date, the Commission will start accepting bids from operators aiming to be one of the two state-licensed betting platform providers in New York.

The Commission will accept bids for a period of 30 days before then taking a further 150 days to select the winning bids. Any operator applying for an online sports betting license will need to run their online apps and services through the state-licensed platforms.

Platform providers can also serve as a sports betting operator. That means that if a supplier such as William Hill were to become a platform provider, the company could also run an online sportsbook of its own in the state.

The minimum tax rate set for platform providers is 13%, but this is expected to rise in the bidding process. In fact. Governor Cuomo has intimated that he expects the rate to jump to around 50%.

Once the bidding process and all other regulatory measures are in place, the state hopes to launch in early 2022 although Senator Joseph Addabbo has suggested that sportsbooks be allowed to take some bets in late 2021 to ensure that there are no hiccups on the official launch date.

The Governor hopes that the official launch date will be some time ahead of the Super Bowl on February 13th, 2022.

Offshore sports betting apps jump ship

2021 also saw some offshore betting apps remove their services from New York State.

Bovada announced in late May that it would cease its New York sports betting operations on June 21st. The company made the announcement to its players registered in New York via email saying that all futures bets for events after June 21st would be refunded. Bovada’s sister site, Cafe Casino has also opted to cease offering its services within the state.

The company has stated that it has decided to leave the state due to newly introduced restrictions on players within the state. It’s believed that Bovada along with other offshore betting sites currently accepting wagers from New York residents may face legal action once the state’s licensed operators launch. This is highly likely as the state will no doubt look to protect tax revenues from licensed mobile sportsbooks.

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The regulator is the New York State Gaming Commission, which started working on regulations in May 2018, when Acting Executive Director Ron Ochyrm said:

Commission staff has long been working on regulations that would effectuate sports gambling under the existing statutory language. Staff anticipates being able to provide a draft for your review in the near term
Ron Ochyrm

The gaming commission approved regulations governing legal sports betting in early June 2019. The four commercial casinos and some mid-state tribal casinos were deemed eligible to apply for in-person sports betting licenses.

Other regulations state that bets can be made on sports such as professional football, basketball, baseball, hockey, and soccer, as well as non-New York college sports. But legal sports wagers cannot be placed on New York college teams, nor collegiate events that take place in the state.

[/vc_column_text][/penci_column][/penci_container][/vc_column][/vc_row]

The regulator is the New York State Gaming Commission, which started working on regulations in May 2018, when Acting Executive Director Ron Ochyrm said:

Commission staff has long been working on regulations that would effectuate sports gambling under the existing statutory language. Staff anticipates being able to provide a draft for your review in the near term
Ron Ochyrm

The gaming commission approved regulations governing legal sports betting in early June 2019. The four commercial casinos and some mid-state tribal casinos were deemed eligible to apply for in-person sports betting licenses.

Other regulations state that bets can be made on sports such as professional football, basketball, baseball, hockey, and soccer, as well as non-New York college sports. But legal sports wagers cannot be placed on New York college teams, nor collegiate events that take place in the state.

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