NY mobile applicants encouraged to hand state 50% of revenue as RFP opens
The launch follows the signing of Governor Andrew Cuomo’s FY 2022 budget in April this year, which included provisions to allow for legal mobile sports wagering in New York.
Rules set out at the time included a $25m licence fee, and a bidding process under which potential licensees would be awarded points according to a scoring system in order to determine the strongest candidates for licensing.
Tax rates will be determined based on the bidding process, but may not be set at lower than 12% of gross gaming revenue (GGR).
Under the scoring system set out in the request for applications, a tax rate between 12.5% and 30% will score applicants 3 points, whereas a 50% rate will see applicants gain 20 points. Additional points for each percentage point over 50% will also be awarded.
The tax rate selected will also determine the term of the licence, with rates between 12.5% and 30% allowing for a 3-year license term, between 30% and 50% allowing for 5 years, and any tax rate at 50% or over granting a 10-year term to the licensee.