DAVY VIEW

Gaining access to the New York (NY) sports betting market is a positive for the successful applicants, including FanDuel (Flutter Entertainment), BetMGM (Entain) and DraftKings, despite the profit opportunity potentially being limited by the proposed tax rate (at 51% of gross revenue). While it remains unclear the extent to which the market can fully evolve in its current structure, NY can still be a valuable contributor to US sportsbook profits. Further, it should strengthen these operators’ presence in both the tri-state area (alongside the uber-successful New Jersey and recently launched Connecticut markets) and nationwide. Longer term, the hope is that the structure of the market can be improved if and when it becomes apparent that the tax take for the state exchequer can be optimised via a different approach.