Bally Bet Finally Opens for Online Sports Betting in New York

The ninth and final operator awarded a mobile sports betting license in NY launched on Thursday. High acquisition costs & a failed takeover bid kept it from launching sooner.
Promo image for Bally Bet's NY Launch. Bally Bet Finally Opens for Online Sports Betting in New York. The ninth and final operator awarded a mobile sports betting license in NY launched on Thursday.
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July 08, 2022

Bally Bet — the ninth and final operator to be awarded a mobile sports betting license in New York — went live on Thursday.

The operator said it was “live and taking bets in the Big Apple on all the major sports” and added that its app was available for download on Android and iOS.

“As an official partner of the NBA, NHL, Major League Baseball, and the Bally Sports broadcast networks, we’re a trusted name in the sports game. Bet with confidence, and, who knows, you may see your name up in lights. After all, if you can make it here in New York, then you can make it anywhere.”

Bally Bet is currently live in five other states — Arizona, Colorado, Iowa, Indiana, and Virginia. It was also issued an internet gaming operator license by the Alcohol and Gaming Commission of Ontario (AGCO) on June 30. The operator still needs to execute an operating agreement with iGaming Ontario (iGO) before it launches in the province.

The operator said it plans to launch in additional states soon and mentioned Ohio by name.

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Uncertainty at Bally’s, “Insane” Costs Delayed NY Launch

The debut of Bally Bet in the Empire State was delayed by uncertainty over who would ultimately control its parent company, Bally’s Corporation.

Standard General LP, a hedge fund led and founded by Bally’s Chairman Soo Kim, submitted a takeover bid for Bally’s on January 25. The deal was valued at more than $2 billion, with the firm offering $38 per share — a 30% premium over the stock’s closing price the day before.

At the time of its offer, Standard General held more than 20% of Bally’s. The firm had increased its share to 37.9% by May 19, according to a Schedule 14A filed with the US Securities and Exchange Commission (SEC).

A special committee formed by Bally’s considered the offer too low and rejected it in early May. The rejection led to speculation that Bally’s was waiting for a better offer, which caused the delay in launching in New York.

Comments by Kim and Bally’s CEO Lee Fenton since January suggest the timing of a launch in New York had more to do with avoiding “insane” customer acquisition costs in the Empire State. Kim used that word to describe the market in an interview with CNBC on January 25.

“The current version of sports betting [in New York] is not a great business,” Kim said. “There will be a wave of consolidation that will rationalize promotions.” He added that he thought the nine sportsbooks in the state would eventually compete against each other through their product offerings rather than with the “free money” they’ve been shelling out to entice players.

Fenton made similar comments during an earnings call to discuss Q2 2022 on May 5. “We will be cautious as we keep a keen eye on marketing spend and how to navigate a high-tax environment in sports betting,” the CEO said.

In the CNBC interview, Kim predicted that Bally Bet would launch in New York by April.

No More Licenses Available in NY, For Now

Bally Bet is one of four operators that applied for a mobile sports betting license from the New York State Gaming Commission (NYSGC) through a consortium led by FanDuel — the other applicants were BetMGM Sportsbook and DraftKings.

It is also the last of the nine online sportsbooks licensed by the NYSGC to launch.

BetRivers, Caesars Sportsbook, DraftKings, and FanDuel launched in the Empire State on January 8. BetMGM and PointsBet followed suit on January 17 and January 25, respectively.

WynnBET joined the market on February 4. Resorts WorldBET was the last to go live on March 3.

Last March, lawmakers in New York considered legislation to expand the number of mobile sports betting licenses to 14 by January 31, 2023, and to 16 licenses by January 31, 2024.

The provision was dropped from the final budget bill in April, primarily due to concerns that it would impact tax revenue to the state. While the provision would have increased the number of licenses, it would have also lowered the state’s 51% tax rate — a rate that many operators, including BetMGM recently, have called prohibitively high.

Fanatics, Barstool, and bet365 are among several operators who didn’t receive a license from the NYSGC the first time. They are all considered likely to resubmit applications if the market is expanded.

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