New York Mobile Sports Betting Approved

Cynthia Paniagua's photo By Apr 9, 2021
New York Mobile Sports Betting Approved

Table of Contents: | New York Sports Betting Bill | Sportsbook Operators in New York | Mobile Sports Betting Skins | Downstate Casino Licensing | Oneida Indian Nation

New York mobile sports betting has been a game of “playing chicken” between Cuomo and lawmakers and Cuomo won. Even though the New York mobile sports betting bill is not exactly what lawmakers envisioned, time was running out and NY could not afford to go one more year without online sports betting revenue.

Tuesday was a huge step forward as the bill was added to this year’s budget thanks to the savvy negotiation tactics of Assemblyman Gary Pretlow. Cuomo finally got his way with the help of Pretlow as lawmakers from both the Senate and Assembly agreed on Cuomo’s convoluted mobile sports betting bill with one adjustment,  the state will select at least two companies via an aggressive bidding process to run mobile sports betting.

New York approved the budget late Wednesday evening and everything seems to be coming together but wait, how does this all sit with the Oneida Indian Nation? Could legal implications follow as the budget could breach an already existing agreement?

New York Mobile Sports Betting Bill Breakdown

New York

Per the New York mobile sports betting agreement negotiated by Pretlow, confirmed with Sen. Joseph Addabbo Jr.(Chairman of Committee on Racing, Gaming, and Wagering), and backed by Cuomo, the deal points are the following:

  • The NY State Gaming Commission will choose at least 2 mobile sports betting operators for the state.
  • Bonus points will be allotted to mobile betting applications that partner with an Indian casino. This does not guarantee approval. Remember this as it could bring legal consequences from the tribe.
  • The New York Lottery will oversee mobile sports betting as originally discussed.
  • An initial license fee of $25 million per operator is required.
  • Operators must agree on a profit-sharing program with the state up to 55%. (State minimum will be 50%)
  • Licensees will be at liberty to pick the online sports betting operators for their skins.
  • Since sports wagers must be placed at casinos, servers will be set up to habilitate local IPs for bettors.
  • A fund of $5 million will be created benefiting youth sports.
  • The use of official league data is preferred but not a requirement.
  • This will be yet another bill that passes that does not include royalty or integrity fees to sports leagues.

Who’s already in the New York Sports Betting game?

Sportsbook Operators in New York

New York has already seen Bet365, BetMGM, BetRivers, DraftKings, FanDuel, and William Hill enter the market. All sportsbooks outside of BetMGM are either at a commercial or retail casino, while BetMGM purchased Yonkers Raceway and could potentially receive a license to operate there.

Barstool Sportsbook also made splashing headlines after entering the New York betting market through a second skin partnership with BetRivers. FOX Bet, Golden Nugget, and Kambi would also receive second skin licenses in New York as operators quickly position themselves for a competitive sports betting landscape.

How Will New York Mobile Sports Betting Partners be Chosen For Skins?

Mobile Sports Betting Skins

This is a question that many are asking and lawmakers including Pretlow have gone on the record of saying “I don’t know”. Lawmakers have focused primarily to get New York in the online sports betting game first. Now that the bill is approved, then the work starts on how these programs will work.

Downstate Casino Licensing: Not Till 2023

Downstate Casino Licensing

Downstate New York won’t see licenses until 2023 since they are on hold. That means mobile betting will not be available till then.

Operators will have to submit RFI’s to start the licensing process.  RFI’s or “request for information” will be a term that will be used quite frequently in the coming months. How will RFI’s be used? The NY gaming commission will issue these RFI’s to take a closer look at possible casinos and operators in the New York City area, Westchester, and Rockland counties.

“Here’s the issue with downstate casinos,” Addabbo said. “There’s a lot of concern about placement in certain areas of the city, so we reverted back to the request for information to basically see what’s out there. There again, our work begins after the budget. We’ll work with the Gaming Commission on a timeframe for the RFI and language to expedite these licenses.”

Oneida Indian Nation vs New York Mobile Sports Betting

Oneida Indian Nation

Let’s go back to May 16, 2013, in Albany, N.Y. The Oneidas struck a deal with the Cuomo administration to guarantee exclusive territory for their casino in exchange for an estimated $50 million in annual payments to the state.

Now let’s jump back to 2021. The tribe reached out to Cuomo asking for clarification on the new sports betting bill and how will mobile betting work under the 2013 agreement? What was Cuomo’s answer? The governor stated that the tribe is not exempt from having to apply for a license and offered bonus points to mobile betting applications that partner with an Indian casino, but without guaranteed approval.

This is a huge problem for the tribe and this is seen as Cuomo not keeping his word. According to Oneida County Executive Anthony Picente “The intent of the governor to do mobile gaming takes away that exclusivity. It’s going against the word and the governor is really wrong here,” Picente said.

What’s the next step? The tribe is evaluating all of its options including legal avenues.

New York Mobile Sports Betting Bill FAQ

Is Mobile Betting Legal in New York?

Mobile betting has just been confirmed with Sen. Joseph Addabbo Jr.(Chairman of Committee on Racing, Gaming, and Wagering) and approved by Governor Cuomo.

Who Will Oversee New York Mobile Sports Betting?

The New York Lottery will oversee mobile sports betting.

What is the New York Mobile Sports Betting Initial License Fee?

An initial license fee of $25 million per operator is required