NEW YORK (1010 WINS) — A New York commission on Monday approved nine mobile sports betting operators for the state, snubbing a bid from companies backed by Jay-Z and David Portnoy.
The New York State Gaming Commission ultimately voted to approve two groups of nine companies, including Draftkings, FanDuel and BetMGM.
A third group of operators that included rapper Jay-Z's Fanatics and Barstool's Penn Sports Interactive was not recommended for a vote.
The selected operators have agreed to pay the state an unusually high 51% tax rate for 10 years.
State Comptroller Thomas DiNapoli has estimated the tax revenue from online bets could bring in nearly $500 million by 2025.
The two teams of winning bids also included Bally’s Corp., Caesars Entertainment Inc., Wynn Resorts Ltd., Rush Street Interactive, PointsBet Holdings Ltd. and Resorts World.
Monday’s vote came after yearslong pushes from Casinos and mobile betting companies to legalize the practice in New York.
Regulators have been working to evaluate potential bidders since the legalization of mobile betting was passed in the state’s budget back in April.