News Legislation

New York grants licenses to nine online gambling firms

Last Updated on by James King

After much speculation and tense anticipation, the state of New York has approved licenses for nine online gambling companies, to offer mobile sports betting in the state, with these being in two blocks.

In line with a predefined structure, the Gaming Commission was obligated to approve a minimum of two platform providers and four operators for licenses and as a result, this has been eclipsed.

New York grants licenses to nine online gambling firms

One block included DraftKings Inc., MGM Resorts International’s BetMGM venture that it shares with UK conglomerate Entain, Bally’s Corp. and FanDuel – owned by Flutter Entertainment.

The second included Caesars Entertainment Inc., Wynn Resorts Ltd., Points Bet Holdings Ltd., Rush Street Interactive and Resorts World (a subsidiary of the Malaysian-owned Genting conglomerate). It is anticipated that this will go live, just before the Superbowl.


Unparalleled potential

Despite the tax that these operators will have to pay being 51 per cent over the next 10 years, already there is a substantial general feeling that the market in New York could explode.

The state plays home to Wall Street, arguably one of the most prestigious areas of the US, where the financial district is.

With thousands of investment bankers, financial traders and hedge fund analysts who have almost infinite levels of disposable income, plus the strong correlation between sports betting and financial trading and speculation, it is easy to see why the industry could benefit and New York could become the most thriving market.


News greeted with enthusiasm

Among many sportsbook executives, this news has been met with optimism, among those who were granted initial licenses.

“We’re pleased to share that BetMGM has been granted a license to operate mobile sports betting in New York, a state vital to ensuring nationwide leadership in sports betting and iGaming over time, ” shared Adam Greenblat; CEO of BetMGM.

“We would like to thank the New York Gaming Commission as well as congratulate them for keeping to their timetable. New York has the potential to be one of the largest sports betting markets in the U.S.”

British firm, Entain (owners of Coral and Ladbrokes) are undoubtedly a big winner here, with the conglomerate sharing this with MGM Resorts International as a joint-venture. They are the only UK online gambling entity to receive a license.

Meanwhile, Caesars International CEO, Tom Reeg added: “We’ve been looking forward to the opportunity to bring mobile sports betting to New York. With more than 19 million people, New York will be the biggest mobile sports betting market in the country, and we feel we are uniquely positioned to bring an incredible product to that market.”

This is certainly going to be one market to keep an eye on.