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PointsBet Begins Full Push Into New York as Sixth Live Sportsbook

PointsBet Begins Full Push Into New York as Sixth Live Sportsbook article feature image
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Credit: Getty Image/iStockphoto/TomasSereda

PointsBet has become the sixth online sportsbook to launch in New York, the company said on Wednesday. They did a preliminary launch earlier in the week and will now begin their full marketing push.

The debut comes a few weeks after four other sportsbooks kicked off mobile sports gambling in New York on Saturday, Jan. 8. BetMGM launched shortly after the first four.

PointsBet will run a new user promo that provides $1,500 in risk-free wagers for PointsBetting and $521 for regular bets.

That offer is the same that they’ve provided in the eight other states where they operate: New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia and Virginia.

DraftKings, FanDuel, BetRivers and BetMGM are also running promotions that are the same that they offer in different states.

Caesars, meanwhile, offered a New York promo that gave new users up to a $3,300 deposit match. While the sportsbook has since reduced their promotion as of last Friday, this strategy definitely onboarded new customers.

Caesars is New York’s leader in market share with roughly 43% ($257 million) of the betting handle, the state’s gaming commission said in a report published last week, though much of that handle likely came from wagers with bonus money. Caesars is not No. 1 in market share in any other state.

FanDuel is second in market share at about 33% ($200 million), while DraftKings is third with about 22% ($134 million).

BetRivers is fourth with 2% of the market share. BetMGM, which launched later than the other four sportsbooks, was not included in the state’s report.

Those figures can be attributed to the fact that many new users only download one or two new apps. Geocomply — the company that keeps track of where and when users sign in for regulatory purposes — said New York bettors have averaged 1.3 accounts per player.

As The Action Network’s Darren Rovell has written, “New bettors don’t tend to price shop and start off with depositing their money into a brand that they are most comfortable with.”

Already, total wagers in the state hit about $600 million over the first nine days of legalization. That handle — across just nine days — already surpasses the Dec. 2021 handle in every other state besides four: New Jersey, Nevada, Pennsylvania and Illinois.

Sportsbooks Resorts World, BallyBet and WynnBet are still waiting to launch in New York.

New York Gov. Kathy Hochuli has expressed an interest in adding three additional sportsbooks.

Users do not need to be New York residents or have a New York address to place wagers. They only must be physically in the state of New York when they make a bet.

In New York, each sportsbook will have to pay an inflated 51% tax on all profits to the state government. That’s encouraging news to New York residents, who will see educational and social services — among other sectors — receive a boost due to the increase in tax revenue.

For reference, sportsbooks in New Jersey only have to pay roughly 13% in taxes.

These launches do not include iGaming — things like online blackjack, roulette, poker and other casino games that are allowed in states like Pennsylvania, New Jersey and Michigan. The legislation signed late last year in New York only allows for online sports betting.

There is mild momentum among the state government to allow for iGaming, especially because of the additional revenue it would bring. Bettors lose far more from these online table games than they do at sports gambling.

There’s more overhead involved in sports betting, and it’s harder for customers to lose their money as quickly as you can at a Baccarat table or slot machine. Plus, individuals can utilize more data to gain an edge in sports gambling.

In Nevada, casinos reported that sports gambling made up just 10% of their net gains last November despite a full month of the NFL, NBA, NHL, Premier League, Champions League and UFC.

While sports gambling accounted for $72 million in net revenue across Nevada casinos that month, blackjack accounted for almost $125 million. Penny slots generated over $328 million in profits.

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