New York regulators take step toward determining who receives online sports betting licenses

As first reported by Tom Precious of The Buffalo News, New York regulators have determined a “final tax rate matrix,” or final tax rate, that all bidding groups have to meet to be considered for a New York online sports betting licenses.

A representative from the New York Gaming Commission confirmed the report with Elite Sports New York.

The final tax rate has yet to be released to the public. The bidding groups have been alerted of the state’s final tax rate and now have until 5 p.m., Monday, Oct. 25, to amend their bids if their proposed tax rates are not as high.

The RFA for sports betting licenses noted that at least a 50% tax rate should be included in a group’s bid, so it’s safe to assume to the chosen tax rate will likely be higher.

If the bidding groups choose to not amend their tax rate bids to reach the tax rate set by the state, the group will be disqualified from further consideration for a license. However, just because a group agrees to the targeted tax rate does not mean it will automatically receive an online sports betting license.

The New York Gaming Commission has until early December to award the online sports betting licenses. However, with the final tax rate matrix being determined and bidding groups being alerted, the process could speed up significantly from here.

Six Bidding Groups for Online Sports Betting Licenses
The gaming commission received six bids – three from singular companies and three group bids – to offer online sports betting in the state. The gaming commission must select at least two platform providers (the technology the online sports betting program will use) and four platform operators (the forward-facing skins for customers) from the submitted bids.