Online Sports Betting Dips in New York While FanDuel Leads the Market
Player spending on online sports betting in New York has experienced a significant downturn, hitting its lowest level in ten months as of June. The state's total handle for the month was recorded at $1.47 billion. While this represents a robust 25.6% increase from June last year, it also marks a significant 25.4% drop compared to May's $1.97 billion.
This decline in player spending has resulted in revenue figures that have also hit a low. June's gross gaming revenue stood at $133.9 million, the smallest monthly total since February and barely higher than the $131.4 million posted in that month. Despite an annual increase of 29.0% in revenue, June's figures fell 34.1% short of May's total earnings.
Several factors contributed to the drop in betting activity. One notable influence was the conclusion of the NBA and NFL finals in the first few weeks of June, neither of which featured a New York team competing for the championship. Additionally, the summer months are traditionally quieter for sports betting, both in New York and across the United States. The MLB season, which runs through the summer, does not typically drive significant betting activity. In June, the market saw a mix of events including horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, but these were not enough to offset the overall decline in wagers placed.
Market Leaders and Financial Contributions
Even as the market overall saw a dip, some operators managed to perform notably well. FanDuel led the pack, posting $67.1 million in revenue from $571.3 million in total wagers for June. The company also made a significant contribution of $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since January 2022. DraftKings followed, generating $40.9 million from a $521.6 million handle.
Other operators also reported their figures for June. Caesars saw customers wager $127.7 million, resulting in $6.8 million in revenue, while BetMGM reported $6.8 million in revenue from a $100.6 million handle. Fanatics had a handle of $67.3 million and declared revenue of $6.7 million, with a hold percentage of 9.96% for June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Finally, Wynn Interactive earned $66,665 from a modest $1.5 million wagered.
Trends and Future Projections
June is typically the strongest month for sports betting throughout the summer, yet the decline seen this year was to be expected. The market often experiences a drop in betting activity during the summer, with a further decline anticipated in July before a slight recovery in August. However, the landscape is poised for a substantial resurgence with the onset of the NFL season in September. The NFL consistently drives high engagement and wagering, suggesting a robust comeback for the sports betting market in New York.
It's noteworthy that major sports leagues are in their off-seasons in June, leading to fewer high-stakes events that captivate bettors. The Copa América was an exception this year, taking place in the US for only the second time, but even this high-profile tournament wasn't enough to buoy the month's figures significantly.
Conclusion
In summary, June's decline in online sports betting in New York can be attributed to seasonal trends and the absence of local teams in major finals. Despite these challenges, market leaders like FanDuel and DraftKings continue to show robust performance and financial contributions. With the NFL season approaching, the online sports betting landscape in New York is likely to witness a vigorous revival.