Approved: State Register Adopts Rules, Regulations For New York Online Sports Betting

Written By Mike Mazzeo on November 24, 2021
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The rules and regulations governing online sports betting in New York were adopted by the state register Wednesday.

This came as no surprise, as NY betting apps anticipate a full launch in early 2022.

The final steps before sportsbooks can accept the first legal bets include setting up servers at commercial casinos and having regulators inspect and approve setup and platform tech.

NY online sports betting nears goal line

Operators (and providers) have engaged in the negotiation process to house their servers on the properties of New York’s four upstate commercial casinos: Rivers, del Lago, Resorts World and Tioga Downs.

Operators must pay $5 million annually to casinos to essentially lease the space, even though operators themselves must take care of upkeep and maintenance.

The New York State Gaming Commission retains final approval of location as well as reasonable and actual costs. Each operator then needs to build out a server room. Finally, an independent testing laboratory will then test and approve equipment.

Why a same-day launch makes sense for NY online betting

As of now, individual providers can seemingly launch once they’ve checked all the necessary boxes and received NYSGC approval. But New York Sen. Joe Addabbo has requested that all providers launch on the same day. The NYSGC would select the date.

This would eliminate NY betting apps trying to jump out in front of the competition to get a head start on customer acquisition. With a 51% tax rate, the likes of FanDuel, DraftKings, BetMGM, Bally’s, Caesars, Resorts World, Rush Street, WynnBet and PointsBet are all incentivized to beat the competition in order to acquire customers and establish long-term financial viability.

“I don’t believe it bodes well for the consumer or the state if everybody starts haphazardly,” Addabbo told PlayNY. “I think there should be a definitive date for everyone. When that definitive date is chosen, most likely by the gaming commission, the question is, ‘Will they be up and ready by then?’ Some might be because of their experience, and maybe they all will. But if you’re not up and running by that date, unfortunately, too bad..”

The hope remains that first bets begin sometime during the NFL playoffs in January, with NY online sports betting fully up and running by the Super Bowl on Feb. 13.

Photo by AP / John Munson
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Mike Mazzeo

Mike Mazzeo is the Lead Writer for PlayNY, arriving after covering several of New York's professional sports teams in a variety of roles for the past decade. Previously, he served as a beat writer and columnist covering the Brooklyn Nets (ESPN) and New York Yankees (New York Daily News). Mike also covered both the MLB and NBA nationally for Yahoo Sports. In addition, he served as a general assignment reporter for ESPN NewYork.com. He has also had bylines in the New York Times, New York Post, Newsday, Forbes and The Ringer. With PlayNY, Mike brings extensive coverage and unique story angles to what is projected to be one of the biggest and most lucrative online sports betting markets in the country. It's been an arduous and confounding process to get here, but 20 million New Yorkers (many of them die-hards) are now legally able to bet on their favorite sports teams across the state via online and mobile platforms.

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