{"id":443,"date":"2021-04-07T12:51:58","date_gmt":"2021-04-07T16:51:58","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/gaminglaw\/?p=443"},"modified":"2021-04-07T12:51:58","modified_gmt":"2021-04-07T16:51:58","slug":"new-york-mobile-sports-betting-approved-in-fiscal-year-2022-state-budget","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/gaminglaw\/2021\/04\/07\/new-york-mobile-sports-betting-approved-in-fiscal-year-2022-state-budget\/","title":{"rendered":"New York Mobile Sports Betting Approved in Fiscal Year 2022 State Budget"},"content":{"rendered":"

New York Governor Cuomo and state legislative leaders have reached a tentative agreement on the Fiscal Year 2022 New York State budget paving a way for mobile sports betting in the Empire State.\u00a0 here is a link to the Senate Bill 2509 <\/a>\u00a0.\u00a0 The General Assembly must now vote to accept the budget and additional changes may be forthcoming.<\/p>\n

In summary, the New York State Gaming Commission plans to issue a Request\u00a0 or Proposal (\u201cRFP\u201d) by July 1, 2021, to select up to two providers to offer mobile sports wagering.\u00a0 According to the April 6, 2021 revised Budget Bill, a \u201cplatform provider\u201d is defined as \u201can entity selected by the [New York State Gaming Commission] to conduct mobile sports wagering pursuant to a competitive bidding process.\u201d\u00a0 The operators selected during in the RFP process would then be able to subcontract mobile betting contracts, also known as \u201cskins\u201d, to other providers.\u00a0 The operators submitting proposals are required to house their mobile sports wagering platform provider server and other equipment with a licensed casino facility.\u00a0 Based on existing publicly reported agreements and\/or affiliations with upstate casinos, \u00a0FanDuel,\u00a0 DraftKings, Bet365, and BetRivers may have such agreements in place.\u00a0 However, as noted in the \u201cplatform provider\u201d definition, any operator that has an agreement with an upstate casino is eligible, and therefore, already existing sportsbooks are not the only potential applicants.<\/p>\n

The selected operators must offer at least four skins combined, but according to New York State Senator Joseph Addabo Jr. and chair of the State Assembly Racing and Wagering Committee, J. Gary Pretlow, there is no ceiling on the amount of skins available, but instead, what the \u201cmarket can bear.\u201d\u00a0 The selected providers will pay a $25 million licensing fee and pursuant to a revenue-sharing agreement between New York and selected providers, New York is estimated to receive a minimum of 50% of gross gaming revenues.\u00a0 Finally, the New York State Gaming Commission may select more providers if it determines additional licenses \u201care in the best interest of the state.\u201d<\/p>\n

Key Components <\/u><\/strong><\/p>\n