SPORTS BETTING

US – New York sports betting tax could be as high as 64 per cent

The New York Gaming Commission has published its ‘final tax rate matrix’ that all bidders will have to adhere to to move forward in the tender.

If it proceeds with a model of two platform providers and four operators, the proposed tax rate will be set at 64 per cent, the highest tax rate for sports betting in the country. The tax rate lessens as the number of providers and operators goes up so if 25 operators and 15 platform providers are approved, the tax rate will be set at 35 per cent.

The New York Gaming Commission said: “As the Final Tax Rate Matrix has been made public, the Evaluation Committee believes it is in the interests of transparency to formally release the Matrix and provide the below narrative explaining the remaining evaluative process and procedure. Pursuant to the RFA, the Mobile Sports Wagering Evaluation Committee reviewed and scored each Application pursuant to Section 7.2 and, pursuant to Section 7.3, established a Total Score for each Applicant before designating a Selected Applicant(s). Proceeding to Section 7.4, the Evaluation Committee compared the Appendix B: Pricing Matrix submitted from each Selected Applicant(s).

“The highest tax rate from among those submitted by Selected Applicant(s) has been established as the Final Tax Rate Matrix as required by statute,” it added. “In accordance with the RFA, all Qualified Applicant(s) have been provided with the Final Tax Rate Matrix and advised that pursuant to RFA Section 7.4 they have five business days to amend their Appendix B: Pricing Matrix to conform with the Final Tax Rate Matrix. They have also been advised that any Applicant declining or failing to amend its Application to reflect the Final Tax Rate Matrix will be disqualified. Upon receipt of a matching or multiple matching Appendix B: Pricing Matrix amendments, the Evaluation Committee will undertake the additional license consideration process outlined in RFA Section 7.5 until there is no benefit to the State by increasing additional Platform licensees. It is only after this process has been completed that the Evaluation Committee will recommend an Applicant(s) for licensing as a Platform Provider(s) or Operator(s).”

The Gaming Commission plans to select finalists by December 6 and give those applicants a week to submit a final application. It has received six bids, three from solo companies and three group bids. It will choose at least two platform providers, to oversee the technology the online sports betting program will use, and four platform providers.