HomeFinanceTax Hike, PointsBet Given Mobile Gaming License in New York

Tax Hike, PointsBet Given Mobile Gaming License in New York

Tax Hike, PointsBet Given Mobile Gaming License in New York

he New York State Gaming Commission (NYSGC) has approved a 10 year license for nine online and casino betting companies to operate in the state.

Among the approved betting operators is Australia’s founded PointsBet, the only Australian company to be accepted inside the U.S ,  whilst its overseas arm has been driving big names with Shaquille O’Neal , one of the most dominant players in NBA history.

FanDuel, DraftKings, Caesars and BetMGM were also among the approved companies.

PointsBet US CEO, Johnny Aitken said “we are thankful to the Gaming Commission for this recommendation and believe it speaks volumes to PointsBet’s reputation and ability to deliver an unrivalled, world-class experience.”

However, it is important to note Fanatics and Bet365 were not approved for a license.

Each of the approved mobile operators will be forced to pay 51% tax on gross gambling revenue for the entirety of the license and a one off fee of USD$200 million (AUD$273 million).

It is the highest levy on gambling in the USA, alongside New Hampshire and is expected to reach USD$1 billion (AUD$1.4 billion) in annual revenue.

Mobile sports betting was only legalised in the state in April this year by former government Andrew Cuomo, however licenses are expected to be awarded in time for the 2022 Super Bowl.

However Westchester County Democrat, Gary Pretlow believes restricting mobile betting operators is a major mistake.

“I’m truly disappointed that the Gaming Commission is making a serious error in not being inclusive.” Pretlow Said.

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