PointsBet became the sixth online sportsbook operator to launch in New York when its mobile app and website launched today.
Four sportsbooks – BetRivers, Caesars, DraftKings, and FanDuel – launched on the opening weekend earlier this month, followed by BetMGM last week.
The arrival of PointsBet should help the nascent industry maintain its momentum, while increased competition is good news for bettors in the Empire State.
A Significant Milestone
PointsBet is one of just nine operators to win a license in New York. The other three are yet to launch.
“Launching in New York is a significant milestone for PointsBet, being one of nine approved online sports betting operators in the state,” said Johnny Aitken, chief executive of PointsBet USA. “New York’s passionate sports fans and bettors will now have access to the fastest online sports betting product in the market, with a live, in-game betting experience that PointsBet controls through our proprietary technology and a world-class team that is unrivaled.”
PointsBet is an Australian company, but it has set up a US headquarters in Denver and it has another office in New Jersey.
“This marks a momentous day for PointsBet in officially launching within the state of New York, poised to be one of the largest markets in the United States,” added group chief executive and managing director Sam Swanell.
A Blistering Start
New York is on course to become the largest sports betting market in the United States. A report from the New York State Gaming Commission revealed that Caesars, FanDuel, DraftKings, and BetRivers handled $603 million worth of wagers during the first nine days of trading this month.
That led to $48.2 million in gross gaming revenue and $24.6 million in taxes for New York, which takes a 51% cut.
The monthly record for any state is the $1.3 billion that New Jersey took in October last year, but New York is on course to break that record. Meanwhile, New Jersey is likely to experience a dip, as New Yorkers no longer need to head over the border to place legal online wagers in the Garden State.
New York is the largest state with legal sports betting. Only three states have a larger population – California, Texas, and Florida – and only California and Texas have a larger GDP. Florida briefly legalized sports betting last year, but it ended a couple of weeks after it was deemed to be unconstitutional in court.
New York is likely to have a far larger handle than New Jersey, Nevada, Illinois, Pennsylvania, and Michigan, which were the top five in 2021.
On the Expansion Trail
New York is the ninth state in which PointsBet has launched. It made its US debut in New Jersey a few years ago, and it is now available in Iowa, Indiana, Illinois, Colorado, Michigan, Virginia, and West Virginia too.
PointsBet stands out by offering two forms of wagering: the standard, fixed-odds betting that its rivals provide; and PointsBetting, which is similar to contracts for differences in financial spread betting.
For example, if you bet $5 on Patrick Mahomes to throw for 320+ yards, you win $5 for every yard he exceeds that total by. However, it can also go against you. If he fails to hit that target, you lose $5 for every yard he falls short by.
PointsBet also offers an online casino in a couple of states, and it is vying to become one of the largest online gambling companies in the country, so it will be interesting to see how it fares in the competitive New York market. It is offering a two-part risk-free bet welcome bonus in the Empire State, including $500 for a fixed-odds bet and $1,500 for PointsBetting, plus lots of ongoing promos.