A Summer Slump in New York's Online Sports Betting
Player spending on online sports betting in New York has seen a significant decline, plummeting to its lowest total in ten months as of June. The revenue figures for online sports betting in the state hit the smallest monthly total since February, highlighting the seasonal ebb in betting activity. In June, New York’s total monthly handle was recorded at $1.47 billion, marking a 25.6% increase from June of the previous year yet representing a 25.4% drop compared to May's substantial $1.97 billion.
The last time New York online sports betting experienced such low spending levels was in August 2023, when consumers wagered $1.11 billion. Gross gaming revenue for June stood at $133.9 million, reflecting a 29.0% increase year-on-year. However, this figure fell 34.1% short of May's total earnings.
The timing of the NBA and NFL finals, which concluded in the first few weeks of June without featuring a New York team, has undoubtedly influenced these figures. Revenue for June was only marginally higher than the $131.4 million posted in February. Summer months are traditionally quieter for sports betting across New York and the United States, and this year is proving no different.
Leading the Pack: FanDuel's Dominance
Among the operators, FanDuel led the market, posting $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel's contribution to state taxes was substantial too, amounting to $34.2 million. Since January 2022, FanDuel has paid nearly $998.3 million into New York state coffers, underscoring its significant role in the market.
DraftKings generated $40.9 million from a $521.6 million handle in June. Caesars customers staked $127.7 million, resulting in $6.8 million in revenue. BetMGM matched Caesars, also reporting $6.8 million in revenue but from a lower handle of $100.6 million.
Smaller Players and Market Dynamics
Fanatics reported a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96% in June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. Meanwhile, BallyBet posted revenues of $658,294, and Resorts World reported revenues of $572,891. Wynn Interactive generated a modest $66,665 off $1.5 million wagered.
The MLB season, which runs through the summer, traditionally does not drive significant betting activity. While June includes events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, these have not been enough to maintain the high levels of engagement seen during other parts of the year. The Copa América taking place in the US for only the second time in its history wasn’t sufficient to counterbalance the overall decline.
Notably, June is typically the strongest of the summer months for sports betting, yet it still falls short of the dynamic activity seen during the major sports leagues' active seasons. As expected, the number of bets often declines further in July, with a slight recovery in August. The sports betting market heats up again in September with the onset of the NFL season, which consistently drives high engagement and wagering.
Looking Ahead
The dip in betting activity in June is part of a familiar pattern, given that major sports leagues are in their off-seasons and fewer high-stakes events captivate bettors. This seasonal downtrend is anticipated by operators who prepare for a robust resurgence with the NFL season's arrival. The NFL, known for its high engagement levels and significant wagering, promises to revitalize the market come September.
FanDuel, DraftKings, and other major players in the market will be looking forward to this seasonal uptick, hoping to surpass their impressive milestones and bolster New York state's revenue from online sports betting. Despite the summer slump, the long-term outlook for the sector remains optimistic as the industry gears up for a bustling fall season.