The announcement has been made for sportsbook operators to throw in their bids for mobile sports betting operations in New York. The application process will be open for 30 days. The state legislators have already announced that licenses will be given out to two platform service providers and four sportsbook operators at the end of the bidding process.
After the closing of the bids, NY State Gaming Commission will have to select the license winners by Jan 6th. But finalists will be announced by Dec 6th itself, and the winners will be declared at the commission’s subsequent meeting. But the exact date when mobile sports betting is expected to begin in NY has not yet been announced.
All bidders will be eligible to win licenses only if they can perform nine different functions like taking bets, generating tickets, computer-managed wagers and payouts, maintain records of betting transactions, provide gaming commission finance reports as and when required, maintain the integrity of gaming, ensure platform security, keep seven years of transaction data records, and establish a digital wallet compatible with all platforms of their sportsbook. Besides these, sportsbooks will also have to submit a breakup of their advertising and promotional plans with the bid response to the RFA.
The RFA bidders will be scored on 75 points divided into seven different categories. A sportsbook will have to get a minimum of 60 points at least to be considered for the finalists’ list. The maximum number of points, 25 points, has been assigned to the business experience in the field of sports betting.
The RFA also has a stipulation that all applicants for the RFA must have a tax rate that is 50% or more than its preferred scenario. Those with a full 50% will have 20 points and for every percentage above 50%.
The RFA has also stipulated that sportsbooks will be awarded an extra five points for any revenue-sharing agreement with the tribal casinos of the state.
After all the bonus and technical points have been calculated, the winners will be announced. Then the rest of the remaining bidders will be ranked on their technical score. Next, the state will try to calculate whether it will be economically beneficial for the state to give out an additional license to this bidder. Additional licenses will be given to sportsbooks according to their ranking on this list till the state finds it beneficial to their revenue income.
Bidding for the RFA will close on Aug 9th, and oral presentations for applicants will start from Sept 1st.