New York Mobile Sports Betting Hauls $600 Million in Two Weeks

New York Mobile Sports Betting Background
Mobile sports betting is off to a fantastic start in New York, taking in more than $600 million in total bets during its first nine days of operation.

According to the state Gaming Commission, a total of $603.1 million was wagered from the January 8th launch up to the cutoff date of January 16, 2022. Those figures suggest that New York mobile sports betting could be on track to break the monthly record of $1.3 billion in betting handle set by New Jersey last October 2021.

On the average, New York generated $86.2 million in bets per day which is twice as much as what New Jersey produced when it broke the monthly mobile sports betting handle three months ago.

Full Month Projection Could Exceed $1.2 Billion

The $603.1 million figure represents the total betting handle for the four currently operating mobile sportsbooks in the state- FanDuel, DraftKings, Caesars Sportsbook, and Rush Street Interactive. It does not include the figures from BetMGM which launched only on January 17th, or one day after the cutoff for the said report.

Including BetMGM, a full month betting handle projection for New York could easily surpass $1.2 billion which only record-setter New Jersey has been able to accomplish in previous months. Aside from potentially breaking the monthly mobile sports betting handle record, New York’s mobile sports betting is also on track to break other national sports betting records.

Caesars’ Glitch

New York’s two-week figures could have even been higher if not for the glitches that the Caesars Sportsbook experienced during the period. These issues prevented several customers from making sports bets while others complained of late withdrawal processing and long waiting times in live customer service chats.

In a statement, Caesars acknowledged the issues and faulted the the unprecedented scale of New York sports bettors which was too much for their platform to handle. According to the gambling company, the N.Y. scale exposed glitches in their platform and they have since made numerous updates to improve customer service.

Mets Owner Steve Cohen in Talkes With Las Vegas Sands for a Casino Near Citi Field

Robert Goldstein Macau Sands Las Vegas Logo

New York Mets owner Steve Cohen is in discussion with Las Vegas Sands about bringing a new casino next to the Mets ball park, Citi Field.

The talks are reportedly preliminary, according to sources who were given anonymity because the matter is private. New York is in the early stages of considering a gaming expansion in the New York City area although that plan still needs to go through a series of regulatory and legislative approvals.

NY Gauging Interest in Awarding Three Casino Licenses

Earlier this month, the New York Stat Gaming Commission issued a 14-pag request information to gauge interest in the three unawarded casino licenses around New York City in a move considered to be a precursor to the opening a formal bidding process.

Cohen is interested in bringing sports betting to the Mets fans but with New York only allowing legal sports betting via land-based casinos, he needed a partner to bring him one . The Mets own Citi Field which is located adjacent to the site of the team’s’ former ball park-Shea Field. If he can pursue Las Vegas Sands to put a gaming property near it, that would be huge for both companies.

LVS Long Rumored to be Eyeing New York 

Las Vegas Sands has long been rumored to be eyeing to enter the Big Apple gambling picture. In fact, that plan was reportedly signed off by Sheldon Adelson before he passed away. Building a casino near a sports stadium in New York city would be an enticing proposition for LVS which currently lacks exposure in the United States.

Earlier this year, the company sold its Las Vegas assets to Apollo Global Management and VICI Properties for $6.25 billion. Las Vegas Sands’ efforts to bring an integrated resort to Texas languished as lawmakers there didn’t prioritize the matter in their last legislative assembly. LVS was also linked to the potential construction of a gaming property in Jacksonville but that rumor died down after a few months.

 

Jay-Z, Sixers Owner Part of Group That Applied for New York Sports Betting License

New York
Music superstar Jay Z and Philadelphia 76ers owner Michael Rubin are members of a group that is applying for a sports betting license in New York under a to-be-former sportsbook called Fanatics Sportsbook.

According to the New York State Gaming Commission, the Fanatics Sportsbook is one of six applications received by the NYGC. The Commission is eyeing to announce the winning bids by December 6th with the intention of launching the New York sports betting market before Super Bowl LVI in 2022.

In its application, Fanatics Sportsbook wrote:

“Fanatics Sportsbook will use one of the largest sports fan databases in North America and proven sports betting platform and player account management technology to operate sports wagering in New York.”

Kambi-Led Consortium

Jay-Z and Rubin are part of a consortium that is being led by Kambi, a spots betting provider based in Sweden but who already has footprints in North America. Also part of the group is Penn National Gaming, which owns Barstool Sports.

In its application to the NYGC, Fanatics- a leading retailer of sports apparel, said that it has formed a strategic partnership with Roc Nation, a global international entertainment organization founded by Jay-Z to gain market advantage in addition to its establish fan database.

Jay-Z was among a group of investors that took part in a $325M investment in Fanatics last week. Owned by Rubin, Fanatics is now valued at $18B.

Other Competing Bids

Aside from Jay-Z’s group, top online sportsbooks FanDuel, DraftKings, BetMGM, and Bally’s are part of a competing bid that includes the New York Yankees, Buffalo Bills, Buffalo Sabres, New York City FC, and the YES Network. Another group led by Caesars Entertainment, Wynn Resorts, Rush Street, and PointsBet have also submitted their own bid.

New York is expected to be one of the largest sports betting market in the United States when full operational. An analysis by Frontier Economics revealed that the industry could be worth $585 million of sports betting revenue during the first year and $5 billion in five years.

Approved sports betting operators will pay a $25M licensing fee and will be taxed at 50% of their sports betting revenue.