New York Sports Betting on the Move: RFP Details to be Published Later This Week

By Jacob Wayne | Jun 28, 2021, 2:36pm

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In April 2021, New York Governor Andrew Cuomo signed the 2022 fiscal budget into law and finally passed the legalization of mobile sports betting in New York. The model implemented for sports betting included a request for proposals (RFP) which starts July 1 and runs for 30 days. Once those 30 days have passed, there will be an additional 150-day period in which the submitted proposals will be ranked. New Hampshire utilized a similar RFP model and ultimately granted a mobile and retail monopoly to DraftKings Sportsbook. There will be at least two platform providers selected in New York with at least four skins (brands) to be utilized. The platform providers will be required to pay $25 million each for a 10-year license. Over 50% of sports betting revenue will be shared with the state of New York; the actual legislation calls for a minimum tax rate of 12%.

History of Sports Betting in New York

January 6, 2021: New York Governor Andrew Cuomo announces he is ready to “raise funds for the state [of New York]” through sports betting. In the past, Cuomo had openly opposed mobile betting and stubbornly defended the state needing a constitutional amendment to legalize it. However, financial issues stemming from COVID-19 and the loss of revenue to neighboring states appear to have led to a change of heart for the New York Governor.
January 8, 2021: Senator Joe Addabbo and Assemblyman Gary Pretlow file S1183 and A1257, respectively, that allow for competitive online sports betting models. These bills increase the potential from one skin to two for each licensee; under the model presented by these bills, New York could house as many as 28 sportsbook brands.
January 25, 2021: Robert Mujica, Andrew Cuomo’s budget director, estimates that the monopoly RFP model for sports betting would generate about $500 million in annual tax revenue for the state of New York.
March 13, 2021: The New York State Assembly releases its annual budget proposal, including mobile sports betting.
April 6, 2021: Governor Andrew Cuomo appears to win the debate on New York sports betting as he is pushing for a state-run lottery model with RFPs.
April 19, 2021: New York online sports betting becomes official after Governor Andrew Cuomo signs the state budget into law; New York legislators are hopeful the sports betting market will launch by the end of 2021.
May 26, 2021: Offshore sportsbook Bovada announces it will end offerings in New York on June 21, 2021, as the new regulations in New York drive out offshore sportsbooks.

Which Sportsbooks are Applying for Mobile Wagering in New York?

According to the state of New York, “all bids are subject to the Freedom of Information Law”. So far, there have been no public conversations about who is presenting bids in New York. However, the following sportsbooks are expected to apply to offer mobile sports betting in New York:

Barstool Sportsbook
Bet365
BetMGM
BetRivers
DraftKings
FanDuel
FoxBet
PointsBet
William Hill

Platform providers will have to pay the $25 million license fee multiple times if they win multiple bids, and operators can include as many platforms as they would like in their bids. Once the bids are provided, the RFPs will be scored and ranked by the state of New York. That process begins on July 1.

Jacob Wayne

I've been a huge sports fan for as long as I can remember and I've always loved writing. In 2020, I joined the Lineups team, and I've been producing written and video content on football and basketball ever since. In May 2021, I graduated from the University of Michigan with a degree in sport management. My goal is to tell enthralling stories and provide meaningful insight on the sports I write about while helping you cash some bets along the way.