On-line Gaming Approved in NY – Multiple Competitors to Offer Services – Optimists Hope for Fall Football Season

The Governor and the Legislature reached an agreement on on-line gaming in New York State last week.  Under the compromise agreement, New York State will select two on line providers.  Each provider will then have the ability to select a minimum of two on-line gaming services or “skins.” Thus under the agreement we will have at least four publicly facing on-line gaming services competing throughout New York State.

A key question is timing. The New York Gaming Commission must first issue an RFP, requesting applications for the two providers by July 1st.  The window stays open for 30 days. The Gaming Commission then has up to 150 days to select the two providers.  If they move fast, and do not take the entire 150 days, it is possible that the system could be running by the beginning of the fall football season.  Absent an accelerated process, we may not see approval until the end of the NFL football season, perhaps in time for the Super Bowl. Let’s hope the optimists are correct and it can start at the beginning of the season!

The New York Gaming Commission will choose bids based on potential platform providers’ gross revenue estimates.. The Gaming Commission will also look at the amount of revenue the provider is willing to pay to the state as well as its experience in running on line gaming services.  A provider must also be willing to enter into a revenue sharing arrangement with the Native American nations in New York.  The license fee for a provider will be $25 million.

We have a long way to go in this process.  But from our perspective we will have at least four “public facing” on-line gaming services in New York.  This should help drive the demand for advertising across the state.   Stay tuned.

 

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