FanDuel Sportsbook has a goal of entering the legal New York sports betting market by the start of the 2023 NFL season. However, FanDuel’s impending buyout of PointsBet Sportsbook’s US operations must first clear regulatory hurdles in several jurisdictions, including the Empire State.
Betting and gambling regulations vary by state, and FanDuel will have to navigate each jurisdiction’s specific requirements in order to take over PointsBet’s 16 active online sporsbooks.
Robert Williams, Executive Director of the New York State Gaming Commission, was clear when discussing the reported $150 million deal between the two sportsbook operators. During a May 22 public meeting of the NYSGC, Williams had this to say:
“There will be no transfer of licenses. Instead, FanDuel is seeking to become the new owner of the ongoing license-holding entity PointsBet New York LLC, doing business as PointsBet. The deal itself requires staff evaluation, and FanDuel will initiate the background investigation of it, its affiliated entities, and individuals who will be designated as qualifiers.”
When can Fanatics Sportsbook NY go real time?
An NYSGC spokesperson reiterated Williams’ remarks, noting that the transaction was an “acquisition” rather than an exchange. As such, the spokesperson declined to provide an anticipated timeline for the launch of FanDuel Sportsbook in New York City, stating only that the commission would consider the deal once the review process was complete.
An internal PointsBet document states that the company’s end of the deal with FanDuel is expected to close by August 31. FanDuel then plans to launch in three PointsBet locations at a time. This process is expected to be completed by May 2024.
As the largest US gambling market, New York City is likely to be a crucial state for FanDuel, which is entering the game late. Sports betting is legal in 37 states and Washington DC following the US Supreme Court’s 2018 decision to strike down a federal ban.
FanDuel and DraftKings have secured early leads, controlling between 70% and 85% of most legal markets, based on monthly reports. BetMGM and Caesars occupy another tier of operators, with others like PointsBet below them.
Much better late compared to never just for NY gambling offering coming from Fanatics
Just for Fanatics Betting & Gambling – the recently formed gambling division of the marketing and apparel giant – the New York licensing process may feel a bit like déjà vu. Fanatics unsuccessfully attempted to obtain a NYC online gambling license in 2021.
The commission granted 10-year licenses for two groups of sportsbook operators prior to the January 2022 launch of online sports betting. One group included Rush Street Interactive (BetRivers), Caesars, Wynn, Resorts World, and PointsBet. The other consisted of FanDuel, Bally’s, BetMGM, and DraftKings.
Each online operator paid $25 million for a licensing fee. They must also make $2.5 million annual payments to a licensed land-based commercial casino to house servers and other required equipment for mobile wagering, according to state regulations.
Fanatics launched a retail sportsbook at FedEx Field in Landover, Maryland, in 2022. Ohio and Tennessee served as testing grounds for Fanatics’ online application during the NFL Draft. Last week, the company began beta-testing the app in Massachusetts. Maryland approved Fanatics Sportsbook on June 1.
Brian Danzis is a writer for PlayNY. A New Jersey native and honors graduate of Rutgers University, he served as a newspaper reporter for the New Jersey Herald and Press of Atlantic City, earning statewide awards for his coverage of politics, government, education, sports, and business. Today, he contributes to New York’s growing legal gambling landscape, including online sports betting and the potential legalization of New York City online casinos. David resides in Mays Landing with his spouse and twins. When not at the beach, golf course, or skiing, Brian enjoys cheering for his beloved New York sports teams – Yankees, Jets, Rangers, and Knicks.
