Bet365 Could Bid for Open New York Sports Betting License
Bet365 Could Bid for Open New York Sports Betting License
- License opening due to Resorts World Bet’s exit at the end of June
- New York represents one of the largest markets Bet365 has yet to tap into
Bet365 is considering a bid for an online sports betting permit that will soon become available in New York, a major market for sports betting where the British bookmaker currently does not operate.
This opportunity arises from the recent exit of Resorts World Bet, an online gaming application owned by Genting. The operator has advised customers to withdraw their funds by June 22, ahead of shutting down its New York operations on June 30. As of now, Resorts World Bet has ceased accepting bets.
A recent report from the Offshore Gaming Association (OSGA) suggests that Bet365 might pursue this vacated permit. It’s worth noting that similar internet sports betting permits have previously been transferred in New York—WynnBet did so earlier this year, which was part of its exit from online gaming, and its license was taken over by Penn Entertainment’s ESPN Bet.
OSGA has indicated that Bet365 could face competition for the license from other contenders such as Hard Rock Bet and Underdog Fantasy Sports. However, as of now, none of these companies have officially declared their interest in the Resorts World Bet license.
Why This Move Makes Sense for Bet365
Recently, Bet365 has initiated online sports betting operations in Illinois and Tennessee, with plans to enter the Missouri market later this year. In addition to those states, Bet365 is already operational in Arizona, Colorado, Indiana, Iowa, Louisiana, New Jersey, North Carolina, Ohio, and Virginia. New York is not on this list, but entering the market could be advantageous.
Speculations suggest that Bet365 might be preparing for a significant company sale or a US IPO (Initial Public Offering). Reports indicate that the company is looking for a valuation of between $10 billion and $12 billion, making access to the New York market potentially a significant asset.
While no sportsbook is currently profitable in New York, it’s seen as vital for any major operator to have a legal presence there, reflecting on the $22.7 billion sports betting handle in 2024, which continues to grow.
The OSGA report also mentioned that Bet365 has indicated willingness to match the $25 million that Penn Entertainment paid for its New York license, indicating strong intentions to enter the market.
Competition in the New York Market
Despite being the dominant players in the New York online sports betting market, DraftKings and FanDuel have established significant barriers to profitability given the state’s 51% tax rate. This makes New York a market that is essential for sportsbooks, implying that if Bet365 pursues the Resorts World Bet permit, it may not be alone in the quest.
Moreover, as stated by the OSGA, Hard Rock Bet and Underdog Fantasy Sports could also submit bids. Historically, regulators in New York have been straightforward regarding the evaluation process, focusing on applicants’ experience and financial viability rather than giving preferential treatment.
In summary, the potential bid from Bet365 for the New York sports betting license represents a strategic move into one of the largest and most lucrative markets in the country, which could significantly enhance its market position as the gaming landscape evolves. With some competition looming, it will be interesting to see how this unfolds.
