New York mobile sports betting will allow a number of operators and will pit prospective platform providers against each other in bidding on how much tax they will offer to pay.
The law embedded in the state budget will require platform providers to pay at least a 12 per cent revenue tax, but they may offer to pay a higher rate in order to win one of the two platform licences. The state is hoping the winning bidders will be willing to pay tax of up to 55 per cent.
Each provider will have to offer at least two sports betting brands and could offer more, meaning a minimum of four so-called skins will be allowed, and there is no maximum stated in the bill. In addition, the state gaming commission could allow additional platform providers.
Platform providers would pay $25m for a licence, plus $5m per year in server hosting fees to a casino. Placing servers in the four upstate casinos, where retail sports betting is legal, is the state’s method of defining the bet as taking place in a casino, rather than holding a referendum authourising a new form of gaming.
Source: Fantini's Gaming Report
