Player Spending Plummets in New York’s Online Sports Betting Scene
Player spending on online sports betting in New York has reached its lowest point in ten months, according to the latest figures for June. The dip in activity has resulted in the smallest monthly revenue total since February.
As the summer months typically usher in a lull in the sports calendar, the total monthly handle for June was recorded at $1.47 billion. While this number signifies a 25.6% increase from June of last year, it represents a steep 25.4% drop compared to May's $1.97 billion. Not since August 2023, when consumers wagered $1.11 billion, have spending levels dipped to these depths.
Gross gaming revenue for June stood at $133.9 million, showcasing a 29.0% rise year-on-year. However, this was a 34.1% shortfall compared to the earnings from May. June’s revenue barely surpassed the $131.4 million posted in February, highlighting the seasonal ebb and flow of sports betting activity.
With the NBA and NFL finals concluding in the early weeks of June, and neither featuring a New York team, there was less local engagement to drive wagering. The MLB season, which normally runs through the summer, traditionally does not drive significant betting action. Meanwhile, major sports leagues are generally in their off-seasons during June, further decelerating betting activities.
June also features notable events like horse racing's Belmont Stakes, golf’s US Open, and, this year, the Copa América football tournament, hosted in the U.S. for only the second time. Despite these events, June remains a quieter month for sports betting, though it's typically the strongest of the summer months. A further decline is expected through July, with a modest recovery in August, before the market revs up again for the NFL season in September.
Industry Breakdown
Among New York's betting operators, FanDuel emerged as the leader, posting $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel contributed $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since January 2022, underscoring its significant role in the market.
DraftKings followed with $40.9 million generated from a $521.6 million handle. Caesars saw customers stake $127.7 million, which translated to $6.8 million in revenue. BetMGM also reported $6.8 million in revenue on $100.6 million wagered.
Other operators included Fanatics, which reported a handle of $67.3 million and $6.7 million in revenue, boasting a hold percentage of 9.96% in June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. Smaller players like BallyBet, Resorts World, and Wynn Interactive posted revenues of $658,294, $572,891, and $66,665, respectively.
With many major sports leagues in their off-seasons, the summer months are traditionally quieter for sports betting across the United States. This trend is particularly evident in New York, where a drop in June betting activity is to be expected. However, with the NFL season just around the corner, the market is likely to see a vigorous resurgence.
As September approaches, the onset of the NFL season is anticipated to rejuvenate the sports betting landscape, consistently driving high engagement and wagering. The cyclical nature of sports betting is a reminder of the industry's dependence on the sports calendar and the events that captivate bettors.