NY Sports Betting Regulator answers more questions than RFP approaches
The New York State Gambling Commission answered mobile NEW Sports betting questions as companies prepare for the upcoming bid.
The official details of the RFP will be published no later than on July 1although they could be released sooner. Platform providers and operators will then bid to become one of the minimum requirements two Platform provider and four Sports betting skins in the state.
Applications are accepted for 30 days with the commission that the winners within. selects 150 days.
The first round of Q&A was published in April, about a week later Governor Andrew Cuomo signed the draft budget including sports betting language into law.
Mobile sports betting in New York should be live on time Super bowl Bet in early 2022.
The public can find out the bidders for NY mobile sports betting
So far, there has been no public discussion of who could team up to come forward with bids in New York. Even if these bidders do not disclose the details after submitting the bid, they are still available.
“All bids are subject to the Freedom of Information Act”, according to the updated question and answer catalog.
However, there won’t be much information that is actually available. Trade secrets and other information that would significantly affect the filing company’s competitive position are generally protected from disclosure, according to the NYSGC.
Platform providers can win multiple bids?
As unlikely as it may seem, the NYSGC can select a platform provider for multiple licenses if that provider has made multiple bids.
A question was asked whether a platform provider would support the $ 25 million License fee multiple times when it won multiple bids, which the regulator confirmed.
The NYSGC also confirmed that it has no preference over how many operators a platform provider includes in its offering. It was also pointed out several times that there will be no changes to the bid after it has been submitted.
This also applies if a sports betting provider is no longer suitable for operation. The other operators must compensate for the difference in the funds promised in the offer.
Another new response made it clear that a New York tribal partner could take on the role of operator and operate under their own brand as part of a bid. Platform providers receive additional points for signing revenue sharing agreements with tribal operators.
No notes on RFP assessment
How much a tribal agreement will increase a platform provider’s offering has not been answered. The same applies to several other questions that could give an indication of what the tender actually wants.
One question arose as to whether the score of an offer would be affected if an operator was included in several other offers. Another asked if platform providers that include New York-based companies would receive preferential treatment.
Those details and more will be made public with the RFP, the regulator replied.
More bid details for new NY mobile sports betting
The updated Q&A provided some additional answers:
- Each operator to whom an offer applies can have its own risk management system. The role of a platform provider is simply to take and register all bets.
- Operators cannot switch platforms while using the ten years License of the offer.
- The operators must submit revenue and tax forecasts as part of an offer from a platform provider.
- Platform providers cannot incur any costs related to official league dates by GGR.
There were also many non-answers
Don’t come to NYSGC with any hypothetical situations, it seems.
The regulator said it would “not consider hypothetical scenarios” in response to four questions:
- Could a platform provider work with a new sports betting company if that sports betting company can no longer function?
- Would a sports betting provider / provider not comply with regulatory or legal requirements affect the platform provider’s license?
- If a platform provider who has made a joint offer with another platform provider fails to comply with regulations or other requirements, would this affect the license of the non-violating platform provider?
- If a sports betting provider intentionally provides misleading information and performs worse than expected, would the licenses of the other sports betting providers in the tender be jeopardized?
Competition when NY mobile sports betting isn’t doing well
If New York botches the RFP process, it could leave a mobile betting market that doesn’t interest residents. That leaves them either betting offshore sports betting or sending potential taxpayers’ money across the border.
New Yorkers are already used to betting on sports New Jersey. As much as 25% New Jersey Sports Betting is attributed to residents of New York.
There is also legal sports betting in Pennsylvania. Both NJ and PA allow remote registration so that a New York resident only needs to cross the border to wager.
Connecticut Sports betting is also coming and should start before NY goes live with its mobile product. Legal single game sports betting could also be used in Canadawhich gives northern New Yorkers another legal option.