Unlocking Opportunities: New York Sports Betting RFA Analysis

New York Sports Betting RFA: A Strategic Play in the Mobile Gaming Arena

The unveiling of the New York Sports Betting Request for Applications (RFA) has marked a significant milestone in the mobile sports betting sector. As of 2021, the New York State Gaming Commission laid out a comprehensive framework aimed at selecting premier mobile sports wagering platform providers and operators. This initiative, deeply rooted in a strategic game of numbers, has reshaped the landscape of sports betting in New York.

The New York State Gaming Commission accepted two bids in November 2021, allowing nine sportsbooks to start mobile betting on January 8, 2022, each agreeing to a 51% tax rate on revenues.

Understanding the RFA’s Framework

Under the fiscal year 2022 state budget, the commission set forth guidelines to facilitate the selection of at least two mobile sports wagering platform providers alongside a minimum of four operators. The essence of this selection process hinged on a detailed scoring and pricing ruleset, which was meticulously outlined in the RFA released on July 9, 2021.

The RFA’s scoring mechanism was predominantly influenced by technical factors, proposed tax rates, and potential bonus points. This intricate scoring system was designed to ensure that applicants not only demonstrated technical prowess but also aligned with the state’s financial interests through competitive tax rate proposals.

Deciphering the Scoring Criteria

The scoring criteria under New York’s RFA process were split into two main categories: Technical Factor Scoring and Pricing Factor Scoring. Each category was aimed at evaluating the applicants based on a diverse range of criteria, from market expertise and platform integrity to tax rate proposals.

Technical Factor Scoring Breakdown

The RFA was issued on July 9, 2021, following legislation signed by former Governor Cuomo on April 19, 2021, authorizing the commission to select one or more mobile sports wagering providers.

• 25 points were allocated for the applicant’s market expertise and the proposed operators’ proficiency.
• 20 points focused on the integrity, sustainability, and safety of the mobile sports wagering platform.
• 15 points assessed the past relevant experience of the applicant and the proposed operators.
• Additional points were awarded based on advertising plans, the capacity to attract bettors, and efforts to promote workforce diversity.

Pricing Factor Scoring Insights

The pricing factor scoring was intricately tied to the applicants’ proposed tax rates on mobile sports wagering gross gaming revenue (GGR). This aspect of the scoring process underscored the state’s intention to maximize revenue through competitive tax scenarios.

The Impact of the Pricing Matrix Requirement

Applicants were mandated to submit a pricing matrix that outlined their preferred tax rate scenarios. This requirement was pivotal in ensuring that the state could effectively gauge the financial implications of selecting particular applicants. The matrix allowed for a dynamic assessment based on various bidding scenarios, ultimately influencing the final selection of licensees.

The Path to Final Selection

The selection process outlined in the RFA was methodical, prioritizing applicants who not only met the technical criteria but also proposed favorable tax rates. This dual-focused approach facilitated a rigorous vetting process, ensuring that the final licensees were not only technically competent but also financially advantageous for the state.

Timeline for Selection and Launch

Following the RFA’s issuance in July 2021, the state embarked on a structured timeline that led to the tentative selection of licensees by December 6, 2021. This timeline included periods for questions, responses, and applicant presentations, culminating in the strategic selection of mobile sports betting platform providers.

Anticipating the Number of Sports Betting Apps

The initial bill’s passage in April 2021 set the stage for a minimum of two platform providers and four apps. However, the RFA opened the door for a potentially more competitive environment, leaving industry observers and stakeholders pondering the final number of apps that would be licensed. This strategic ambiguity underscored the state’s commitment to fostering a robust mobile sports betting ecosystem.

Conclusion: A New Era for New York’s Betting Landscape

The New York Sports Betting RFA has undeniably set a new benchmark in the realm of mobile sports wagering. Through its comprehensive scoring system and strategic requirements, the state has not only enhanced the competitiveness of the betting market but also maximized its revenue potential. As we look back from 2025, the successful implementation of this framework has solidified New York’s position as a leading player in the national sports betting industry.