Nobody ever accused the New York State Register of being a riveting read. But for proponents of mobile sports betting in the state, issue 47, posted a day before Thanksgiving, is a must-read document that moves the needle that much closer to the launch.
The Register contained what amounts to the launch code—the rules and regulations governing online sports wagering. If these guidelines didn’t get published the process would grind to a halt, according to USBETS.
With the publication, the New York State Gaming Commission can “prescribe the rules for mobile sports wagering through servers located at casinos and improve sports wagering regulation at casinos,” the Register says.
Comments and requests received by the commission were answered in the Register. Some of the issues related to DraftKings. The company sought approval for employees of one sportsbook to wager on a competitors’ site. No deal, the Commission said.
The reason: it would compromise “the integrity of sports wagering if employees of one licensee used their knowledge of wagering data to gain wagering advantages, to the perceived disadvantage of bettors in the public who lack access to such information.”
DraftKings also objected to a requirement that all software be tested in advance, preferring only critical software. The commission nixed that idea as well saying all software can be considered critical.
DraftKings also asked for—and was denied—the link to customer complaints to be taken off the main page and out on the customer account page.
The New York Racing Association wanted to offer its advance deposit wagering platform to the mobile sports betting licensee. The commission was amenable as long as applicable regulations were followed.
Penn National asked that promotions be submitted for approval in as little as 48 hours in rather than 15 days as the law states. That request also fell on deaf ears.
The next step is approval of the technological requirements to go live. Sportsbooks need to set up their servers at one of four upstate commercial casinos, and have regulators approve the set up. Negotiations are underway. The annual cost for this arrangement is $5 million for each operator, paid to the host casino, plus the cost to construct a server room and maintain the server.
This could be completed by early 2022, in time to accept bets for the Super Bowl, according to PlayNY.
New York State Senator Joseph Addabbo has requested that all providers launch on the same day, a date selected by the gaming commission.
“I don’t believe it bodes well for the consumer or the state if everybody starts haphazardly,” Addabbo told PlayNY. “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.
When it does go live, bettors won’t be able to wager on any in-state college teams, like Syracuse, St. John’s or Army.
“The intent was an effort to protect New York college athletes from outside influences,” Addabbo said. “This issue is a fraction of the totality of mobile sports betting, but it’s something to keep an eye on. … If we’ve missed the mark on something, the legislature has to stay ready to correct it or to improve it. I’m always constantly thinking about the next step. I think that’s what the market dictates.”
New Jersey has the same regulation, and at the polls in November, voters chose to retain the rule.
Once the launch date arrives, the marketing battle for bettors will step up as the state becomes the largest mobile market in the country, according to Forbes.
“With nearly 20 million residents, one of the most visited cities in the world, and fervently loyal fan bases, New York is the next battleground for sportsbooks to compete for valuable market share,” said Max Bichsel, vice president of US Business for the Gambling.com Group, which operates affiliate Bookies.com.
