License international

New York regulators tender for new casinos, agree 64% tax for online sports betting

T

he NYS Gaming Commission on Wednesday issued an “information request” for unassigned commercial casino licenses at up to three New York-area casinos.

Proposals are expected on December 10 and the request for proposals (call for tenders) is set to gauge interest in developments in the lower state region, reports New York Post. This decision, which should arouse the interest of the main operators, is the first step before the launch of the process of electing official offers.

The Commission launched the request to “solicit information from interested parties” in the development and / or operation of gaming facilities. Similarly, the Commission wishes to receive comments from parties “who could be affected by the upgraded facilities”.

It is speculated that some of the licenses could go to gaming properties that have already been given the green light to run slot machine games in the region.: property of Genting Resorts World Aqueduct Casino in Queens, and owned by MGM Resorts Empire City Casino in Yonkers.

Casinos could be located anywhere in New York, Nassau-Suffolk to Long Island and the counties of Westchester-Rockland-Putnam to the north of the city, while there are strong opposition among Manhattan lawmakers to open a casino in Midtown or other parts of New York County.

The New York Post previously reported that Bally’s Corp., Wynn Resorts and Las Vegas Sands were all interested in competing for a casino license in the New York City area.

Throughout the ‘request for information’ process, the Commission will assess certain topics and questions, such as: what is the interest of the project, what would be the ideal locations for casinos, what should be the size of the venues, and the best taxation and royalty model.

Meanwhile, on Tuesday, the New York committee responsible for licensing online sports betting in the state took a big step forward by determining a “final tax rate matrix” that all bidders will need to do. respect. be taken into account in the competition.

Auction groups have been alerted to the rate and will have until 5 p.m., Monday, October 25, to change their bids if their proposed tax rates do not match those required. The matrix has been made public.

The table establishes the proposed prices according to the number of platform providers and sports betting operators selected for allocation. NYSGC will select at least two platform providers and four operators.

For a scheme of two platform providers and four operators, the proposed tax rate is 64%. The tax rate decreases as the number of providers and operators increases: in a scenario of 25 operators and 15 platform providers, the tax is 35%.

In its call for tenders for sports betting licenses, The New York Gaming Commission has said it is aiming for a tax rate of at least 50%. The new final tax rate supports this intention.

The rate of 64% + would be the highest in the country for sports betting. New Hampshire currently taxes income at 51%, while Pennsylvania taxes at 36%. By comparison, a state like Indiana taxes sports betting income at 9.5%, while New Jersey taxes online sports betting income at 13%.

The 50% tax threshold was a key point for Governor Andrew Cuomo, who, until just a few months ago, was not in favor of offering mobile games in the state. However, after the COVID-19 pandemic threatened the state’s finances, it sought new sources of revenue.

If a bidding group chooses not to change its tax rate to meet that set by the state, the group will be disqualified from further review. for a license. However, acceptance of the new tax rate does not mean automatic receipt of an online sports betting license.

During the call for tenders, it was announced that the proposals will be scored on several factors, including experience in sports betting as well as the experience of operator partners.. Applicants will also receive bonus points if they have a revenue sharing agreement with a tribal gaming operator in the state.

After reviews and oral presentations, the Gaming Commission plans to select the finalists by December 6 and give those applicants one week to submit a final application. The prizes would then be awarded at the next committee meeting.

The New York State Gaming Commission received six offers, three from individual companies and three from group offers. The commission must select at least two platform providers, who will be in charge of the technology that the online sports betting program will use, and four platform operators from the offers submitted.


Source link

LEAVE A RESPONSE

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