Mobile Sports Betting Security: New York Publication Discusses Steps to Protect Servers in Betting Apps
Fresh Take:
The NY gaming commission has greenlit nine mobile sports betting operators and eight platform providers, marking a significant leap forward for the industry in the state. Although the critical work lies ahead, these top players must iron out the details and stake their grounds before they can offer their services to New Yorkers, possibly as early as Super Bowl season.
From the commission's vantage, the ball is in the bidders' court. Each operator must secure a deal with one of four non-tribal upstate casinos, which will serve as the homes for the mobile servers needed for wager processing. The chosen platform providers will then make an annual $20 million payment to the four commercial casinos.
The heavy hitters make up the majority of the approved operators. FanDuel, DraftKings, BetMGM, and Bally Bet – part of the "super bid" – are all authorized to operate, and were also approved as platform providers. Kambi-led consortium members Rush Street Interactive, Caesars Entertainment, PointsBet, Wynn Resorts, and Genting (Resorts World) also got the green light, with Caesars, Wynn, and PointsBet also approved as platform providers.
Upstate casinos with US retail partnerships include:* Del Lago Resort & Casino in Seneca County (DraftKings Inc.)* Resorts World Catskills in Sullivan County (Bet365)* Rivers Casino in Schenectady County (Rush Street Interactive and Kambi Group plc)* Tioga Downs in Tioga County (Betfair US/FanDuel Sportsbook)
It's worth noting that each operator need not partner with the same casino that houses its retail counterpart. For instance, if FanDuel maintains a brick-and-mortar sportsbook at Tioga Downs, it can opt for one of the other three casinos to host its mobile server.
If platform providers fail to broker deals with gaming facilities, the commission has the authority to mandate housing locations. The annual fee per provider currently stands at a minimum of $2.5 million, and will increase if fewer than eight become operational.
The process to legally launch mobile sports betting in New York isn't a cakewalk. The commission has outlined a set of requirements, including securing robust account verification technology, passing independent testing, and constructing server rooms. Some believe that jumping through these hoops might prove challenging, as there's "a lot" at stake for the sportsbooks.
Meanwhile, the Oneida Indian Nation, owner of Turning Stone Resort Casino, views the selection of the Kambi-led consortium as a positive development. The Oneida Nation opened a retail sportsbook with Caesars Sports in 2019, and partnered with the Kambi consortium for mobile operations. If the state adopts mobile sports betting, the Oneida Nation could launch operations as early as 2022.
- The nine approved mobile sports betting operators in New York, including FanDuel, DraftKings, BetMGM, Bally Bet, Rush Street Interactive, Caesars Entertainment, PointsBet, Wynn Resorts, and Genting (Resorts World), must find a deal with one of the four non-tribal upstate casinos.
- Each mobile server needed for wager processing will be housed in these casinos, with the chosen platform providers making an annual $20 million payment to the casinos.
- Operators are not required to partner with the same casino that houses their retail counterpart, as demonstrated by FanDuel's potential to choose one of the other three casinos if it maintains a brick-and-mortar sportsbook at Tioga Downs.
- If platform providers fail to broker deals with gaming facilities, the NY gaming commission has the authority to mandate housing locations, with the annual fee per provider starting at a minimum of $2.5 million.
- The launch of mobile sports betting in New York involves meeting a set of requirements, such as securing robust account verification technology, passing independent testing, and constructing server rooms, which some are suggesting to be challenging given the significant stakes involved.
- Despite the challenges, the Oneida Indian Nation, owner of Turning Stone Resort Casino, sees the approval of the Kambi-led consortium as a positive development, with the potential to launch mobile operations as early as 2022 if the state adopts mobile sports betting.
