New York expected to name online sports betting operators this week

New York is expected to name at least two operators as early as this week to begin offering online sports betting, according to a source familiar with the matter.

Online sports betting is likely to be up and running before the kickoff for this year’s Super Bowl, the source told The Post.

The state is expected to select at least two groups to begin online sports betting: the consortium of Bally Bet, BetMGM, DraftKings and FanDuel; as well as the group of Caesars, Wynn Interactive, Empire Resorts and Rush Street Interactive, according to people familiar with the matter.

One of the remaining questions is whether New York grants a license to a third group – the team of rapper Jay-Z, Fanatics and Barstool’s Penn Sports Interactive.

A source close to the situation said the Fanatics group has not been given the same paperwork to sign this week as the two groups that appear to have been selected by the state – raising questions about whether the Fanatics group will get a license.

A spokesman for Fanatics said: “As far as we know, the process is still ongoing.”

The New York Gaming Commission declined to comment on the process, except to say it remained on schedule.

When officials give the green light, New York expects $ 10 billion in sports betting next year, with the nearly $ 1 billion in expected profits distributed between the state and operators.

Online operators will have to give 51 percent of their profits to the state of New York, according to an agreement reached between applicants for a betting license and the state, a source told The Post.
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The companies selected by New York have agreed to give over 51 percent of their profits to the state, according to a source familiar with the matter – a division that far exceeds consumption in most states where online sports betting is legal.

Due to the state’s high prevalence, players may see worse odds in New York than they do in other states, a source said as operators look for juice profits.

The unusually large profit sharing means operators are unlikely to offer promotions to new players in New York, the source said close to one of the bidders. Such campaigns are often seen in national advertisements.

“We will not see any free bets,” the source said.

By comparison, online sports betting providers in New Jersey share 13 percent of their profits with the state. Connecticut charges operators 13.75 percent. Thirteen other states range from Iowa, which charges 6.75 percent, to Pennsylvania, which charges 34 percent.

The only state with a take equivalent to New York is New Hampshire, which also charges 51 percent.

Andrew Cuomo.
Former Gov. Andrew Cuomo was against online sports betting for years, but changed his tune amid budget problems during the COVID-19 pandemic.
Richard Drew / AP

State Sen. Joe Addabbo, a Democrat representing parts of Queens, said mobile sports betting is on track to be ready to go before the Super Bowl.

“They follow the schedule,” he said. “I give the Gambling Commission credit for staying on track given the change in governors,” said Addabbo, chairman of the betting, betting and gambling committee.

He said he had no inside knowledge of who has been approved for the licenses.

Former Governor Andrew Cuomo’s legacy will include his return to online sports betting. For years, he was against the idea, even though sports betting was legal in New York’s upstate casinos. He said the state needed a constitutional amendment to approve online sports betting. Then came the pandemic and a budget deficit.

In January 2021, Cuomo announced that he would support online sports betting if the state had a significant percentage of the profits. New York signed a budget agreement in April that included mobile sports betting.

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