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Bet365 Could Bid for Open New York Sports Betting License

Bet365 is said to be contemplating a proposal for an online sports betting license in New York that will soon be available — one of the major states where the British bookmaker is not currently active. 

The opening is a result of the exit of Resorts World Bet, Genting’s mobile app for online sports betting. The operator informed customers last week that they need to withdraw funds from their accounts by June 22 before the company closes its New York operations on June 30. Resorts World Bet ceased taking bets in New York on Monday. 

A new report from the Offshore Gaming Association (OSGA) indicates that Bet365 might pursue the permit that Resorts World Bet is relinquishing. Historically, internet sports betting licenses have been issued in the Empire State. In early 2024, WynnBet exited online gaming as part of a larger strategy, and its license was taken over by Penn Entertainment's ESPN Bet. 

OSGA observes that Bet365 may face competition for that license from Hard Rock Bet and Underdog Fantasy Sports; however, none of the three gaming firms have publicly indicated interest in the Resorts World Bet license. 

Reasons Why Bet365 Benefits 

Bet365 has recently introduced online sports betting services in Illinois and Tennessee, with intentions to enter the Missouri market when it opens later this year. Besides Illinois and Tennessee, Bet365 can also be accessed in Arizona, Colorado, Indiana, Iowa, Louisiana, New Jersey, North Carolina, Ohio, and Virginia. New York is not on that list yet, but the operator might have a reason to venture into the state. 

One possible motivating factor might be the speculation that Bet365 is preparing for a complete or partial sale or a potential US initial public offering (IPO). The company is said to be aiming for a valuation between $10 billion and $12 billion, which might be more achievable with access to New York.

"Even though no sportsbooks are making money in the Empire State, it’s still deemed crucial for any company to be deemed a major operator they must have a legal presence in the state where sports betting handle in 2024 was $22.7 billion and is growing steadily each month,” according to the OSGA.

The report suggested that Bet365 might be keen to venture into the fourth-largest state, expecting it to legalize iGaming, and has informed Resorts World Bet that it would at least match the $25 million Penn Entertainment paid to Wynn for its license in New York. 

Bet365 May Encounter Rivalry in New York 

Even though the New York online sports betting market, similar to almost every other state, is largely controlled by DraftKings and FanDuel and challenging to make a profit due to the state's 51% tax rate, it remains essential for sportsbook operators. 

This suggests that should Bet365 seek the Resorts World Bet license, it may not be the only contender for it. As OSGA mentioned, Hard Rock Bet and Underdog Fantasy might join in on the action. 

Regulators generally avoid favoritism, and ideally, they should not partake in such conduct. Instead, the focus is on bidders' expertise and financial stability, along with other criteria, yet Brooklyn's Underdog Fantasy is a local firm, suggesting it may be a strong contender for a New York sports betting license should it decide to pursue a bid.