Betting News

NY Selects Top Mobile Betting Bidder Amid 64% Tax Rate

After verifying that applicants might face a rate of up to 64 percent of the gross total of gaming revenues, the New York State Gaming Commission has given potential mobile sports gambling companies until 5 p.m. on Monday to revise their planned tax payments.

The panel, which established a filing deadline of August 9, said that it had scored the bids and chosen the top tax rate given among some of the applicants.

If the Board chooses 4 or 5 operator licenses, the rate of contribution will be 64 percent, with payments subsequently decreasing to 50 percent for ten to twelve operators and 35 percent for thirteen or more. So far, 14 operators have participated in the competitive bidding, But any one of them refusing to comply with the new tax grid will be removed from consideration.

Bidders were encouraged to offer the state a tax rate of roughly 50% in response to the commission’s request for applications in July, with the suggested bands among the highest in the United States for sports gambling.

According to online betting news, the final selection of applications will be made before 6th December 2021. The commission noted in an email to applicants that the new update was “simply a step of the evaluation and selection process,” and that operators that suggested the highest rates would not have to make any changes.

The board also emphasized the need for non-collusive bidding, which ensures that their proposals are hidden from competitors. Prospective bids were encouraged to offer the state a tax rate of at least 50% when the commission issued its call for bids for mobile sports gambling technology vendors in July.

The suggested rates of tax are one of the deciding elements in granting a license, with the initial charge set at 25 million dollars. Technical considerations, such as market experience and the authenticity and durability of the individual’s platform, are worth up to seventy five points in the rating system.

Revenue-sharing deals with Native American tribes or nations may be worth an extra five points. In addition, licensees would be compelled to place their servers in a New York casino and pay a 5 million dollars annual charge to the operator.

David Bright

David Bright joined Times of Casino as a news writer focused on the casino industry. He holds a bachelor degree in Economics and Accounting and currently contributing in-depth news articles. David writes on the casinos, gambling legislation, poker, and much more.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button