After a long and drawn-out process, the state of New York will finally launch its online sports betting market. This came after the New York Gaming Commission issued conditional licenses on Monday. There were nine major sportsbooks selected including a “super bid” that features some of the biggest names in the industry.
New York State Finally Joins the Party
The fact that New York state had launched its legal sports betting market without the ability to accept online wagers never made any sense. It did if you follow the letter of the law, however, it was an amendment that should never have been as complicated as it has turned out to be. In the meantime, the Empire State has watched hundreds of millions of dollars flow out of Manhattan and into the pockets of New Jersey.
That all changed recently when the New York Gaming Commission issued conditional licenses to nine major sportsbooks on Monday. This move automatically makes the state of New York one of the heavyweights in the online sports betting market.
Conservative estimates that the New York market has the potential to hit $1 billion in revenue. That should not be surprising to anyone considering the overall financial power that New York has. Combine that with having several franchises in all of the major professional North American sports leagues and you soon realize the sky truly is the limit.
Big Time Names Join the Fray
As you would expect, some major players will be involved in this new market. Nine game operators gained entry into the market, even with the hefty 51% tax rate. You can expect all of these brands to be in full marketing mode, trying to get their pieces of the pie. There is a “super bid” that has the potential to be a massive moneymaker. The members of the super bid include: FanDuel, BetMGM, DraftKings and BallyBet.
The other group that applied is known as the Kambi Group and includes: Caesars Sportsbook, Winn Interactive, Rush Street Interactive, Resorts World and PointsBet. The New York State Gaming Commission approved 10-year licenses for both groups that total nine operators. The fact that these groups wanted in on the action despite the hefty tax rate shows you the earning potential of the New York online betting landscape.
Tax Rate Still a Sticking Point
Don’t expect this issue of the 51% tax rate to go away quietly. While the two aforementioned groups have accepted it, they are certainly not in favor of it. Neither will New York sports bettors once the market does eventually launch. The fact of the matter is, these groups will make their money one way or another and for sports betting fans, that usually comes in the form of unfavorable lines.
Remember, New Jersey isn’t going anywhere and depending on where you live in Manhattan and the surrounding New York City area, it still might be worth it to make the commute.
These books will be counting on the fact that sharp bettors would be more likely to take that trip than recreational players. The thing is, with the sheer amount of money in New York, the higher you bet, the more these bad lines affect your bottom line. Big bettors, even recreational ones, will not be happy at all with the odds on offer.
Players across the country that don’t yet have access to legalized sports betting via mobile, can go to OddsTrader once this changes. OddsTrader currently offers betting odds comparison in Illinois, Colorado, New Jersey, Pennsylvania, Tennessee, Indiana, Michigan, Virginia, Iowa and West Virginia.
