New York's Online Sports Betting Spend Hits 10-Month Low
In a surprising turn of events, player spending on online sports betting in New York reached its lowest point in ten months by the end of June. As the summer heat set in, so did a decline in betting activity, with revenue numbers falling to their smallest monthly total since February.
June's total monthly handle was recorded at $1.47 billion, illustrating a striking 25.4% drop from May's $1.97 billion. Nevertheless, it's notable that this figure actually represents a 25.6% increase from the previous June, emphasising the variable nature of the sports betting landscape.
Seasonal Slump or Strategic Shift?
Gross gaming revenue for June tallied at $133.9 million, only 1.9% higher than February's $131.4 million. This figure, while 29.0% higher year-on-year, fell 34.1% short of May's total earnings. This drop might not only reflect the conclusion of major sports leagues like the NBA and the NFL, neither of which featured New York teams in their finals, but also the traditional ebb in sports betting during the summer months.
Summer is traditionally quieter for sports betting across New York and the broader United States. With major sports leagues in their off-season and fewer high-stakes events, such as the NBA and NFL finals, captivating bettors, a decline in activity during June is to be expected. While June does see significant events like horse racing's Belmont Stakes, golf's US Open, and the Copa América football tournament, these do not drive the same high level of engagement as the NFL season, which starts in September and consistently induces a surge in betting activity.
Performance of Major Operators
FanDuel led the operators with a commendable $67.1 million in revenue from $571.3 million in total wagers for June. This contribution led to $34.2 million paid in taxes for the month, bringing FanDuel's total contributions to state coffers to nearly $998.3 million since January 2022.
DraftKings followed suit, generating $40.9 million from a $521.6 million handle. Caesars saw customers stake $127.7 million, leading to $6.8 million in revenue. BetMGM reported $6.8 million in revenue from $100.6 million wagered, while Fanatics noted a handle of $67.3 million and revenue of $6.7 million, securing a hold percentage of 9.96%.
Other operators in the market also posted their figures, with Rush Street Interactive generating $2.5 million from $68.8 million in total wagers, BallyBet yielding revenues of $658,294, Resorts World posting $572,891, and Wynn Interactive drawing $66,665 off $1.5 million wagered.
Looking Forward
Despite June typically being the strongest of the summer months for sports betting, the market is anticipated to experience a further drop in numbers in July, with a slight recovery in August. The resurgence will likely gain significant momentum in September with the onset of the NFL season, a period which historically drives substantial engagement and wagering activity.
In conclusion, while New York's online sports betting market has seen a notable decline in player spending in June, the market dynamics suggest that this is a temporary lull. The upcoming NFL season promises to reinvigorate the market, potentially driving it to new heights as bettors reinvest their enthusiasm and funds into one of the most popular sports leagues in the United States.