The New York State Gaming Commission has approved nine mobile sports gambling businesses

New York State gambling authorities allowed nine companies to operate in the new market. 

According to authorities, the businesses’ sports-betting income would be taxed at a rate of 51 percent, one of the highest among states where sports gambling is authorized. Nonetheless, the massive population of New York creates a potentially profitable mobile betting market for gaming operators. New York estimates that a $1 billion sports wagering industry will produce $482 million in yearly tax revenue from mobile gaming alone.

New Approval – What Does It Mean? 

The New York State Gaming Commission decided on Monday to grant 10-year licenses to two groups of betting companies. FanDuel joined forces with BetMGM and DraftKings. 

The approvals imply that people living in New York will have the possibility to place bets using their smartphones – Before that, the state had confined sports betting to wagers made in person at casinos. Regulators have stated that betting businesses have complete flexibility over when they wish to begin. 

According to Adam Greenblatt who is Chief Executive at BetMGM New York is critical to securing long-term national leadership in sports gambling and online gaming in general. 

Penn National Gaming Inc. and Fanatics Inc., a sports-merchandise company wanting to expand into sports gambling, were among the firms rejected by New York state. It is important to note that the same day the approval happened, DraftKings shares rose 2.4 percent, while Caesars shares slid 1.1 percent and MGM Resorts lost 3.6 percent. Penn National’s stock was down 4.5 percent.

According to gambling pros, the concept of companies giving up more than 50% of their profits may make the financial calculation for operating in the state much harder than in other places with lower taxation.

U.S States Gambling Situation

Did you know that almost 90% of wagers in New Jersey which is now one of the largest sports-betting markets, were placed online rather than in a casino in September of 2021? In New Jersey, online sports wagering income is taxed at a rate of 14.25 percent.

Other states’ sports-betting tax rates range from 6.75 percent in Iowa to 36 percent in Pennsylvania. Sports betting is permitted in 32 states, however not every state has approved internet gambling. Mobile gambling is available in at least 18 states and Washington, D.C.