As mobile sports betting starts to open up in the state of New York, large brands are handing in their applications for a license. However, recent reports have suggested that the New York State Gaming Commission has launched a request for any bidders to offer the state a revenue share of 50% or more.
What is the bidding process?
New York Governor Andrew Cuomo included provisions for mobile sports wagering in the state earlier this year with new rules already set out. Any potential licensees must pay a $25m license fee and engage in a bidding process with points awarded for the strongest candidates.
It is expected that taxes will be determined based on the bidding process once this is complete. The tax rate will not be set at lower than 12% of gross gaming revenue.
Applicants incentivised to give over 50%
With licensee applications coming in from some of the big brands, the NY state government has decided to incentivise them to hand over more revenue. According to the scoring system, the applicants who go for a tax rate between 12.5% and 30% will be awarded 3 points.
However, those who go for a 50% rate will gain 20 points. This is a clear incentive and one which we should all take note of. The tax rate is also reported to determine the term of the license with those who opt for a higher tax rate getting a 5 year license. Interestingly, those who opt for over 50% will be granted a 10 year license.
It is clear that while the NY state government is open to mobile sports wagering in the state, they are hoping to share as much of the revenue as possible.
