Monthly Plummet in New York Online Sports Betting
In a surprising turn of events, player spending on online sports betting in New York dipped to its lowest total in ten months as of June. The revenue figures for June marked the smallest monthly total since February, highlighting a significant shift in the betting landscape.
June's total handle for New York tallied up to $1.47 billion. While this figure represents a robust 25.6% increase from June last year, it's a noticeable 25.4% drop compared to May's $1.97 billion. This decline is striking as New York hasn't experienced such low betting levels since August 2023 when the handle stood at a mere $1.11 billion.
Gross gaming revenue also saw fluctuations, standing at $133.9 million for June. This amount marks a 29.0% year-on-year increase, showcasing the growing trend of online sports betting in the state despite the monthly ebbs and flows. However, June's revenue fell 34.1% short of May's earnings, only marginally surpassing February's $131.4 million.
Impact of Major Sports Events
The NBA and NFL finals, which concluded in the early weeks of June, did not feature any New York teams. This absence likely dampened local enthusiasm for betting. Moreover, summer historically tends to be quieter for sports betting not just in New York but also across the United States. Major sports leagues such as the NBA and NFL are in their off-seasons, resulting in fewer high-stakes events that captivate bettors.
Leaderboards and Revenue Contributions
Drilling down into the contributions from major operators, FanDuel led the pack with $67.1 million in revenue from a total of $571.3 million in wagers for June. The company's tax contribution for the month amounted to $34.2 million, adding to nearly $998.3 million they've paid since January 2022 into state coffers.
DraftKings followed closely, generating $40.9 million from a $521.6 million handle. Caesars saw its customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM reported similar figures, with a revenue of $6.8 million from $100.6 million wagered. Fanatics reported a handle of $67.3 million and revenue of $6.7 million with an impressive hold percentage of 9.96%.
Other notable contributions came from Rush Street Interactive, which generated $2.5 million from $68.8 million in total wagers. BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive managed to generate $66,665 off $1.5 million wagered, showcasing a diversified spectrum of operators.
Seasonal Trends and Expectations
The MLB season, running through the summer, traditionally does not drive significant betting activity. Although June hosts events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament – which took place in the US for only the second time this year – they didn't substantially boost overall betting volumes.
June is typically the strongest of the summer months for sports betting, but even then, the market tends to be subdued. The number of bets usually declines further in July with a slight recovery in August as sports seasons prep for reopening. The NFL season's onset in September consistently reignites the market, driving high engagement and wagering activities.
Outlook
Given these patterns, a drop in betting activity in June was to be expected. While the summer months may bring a lull in the market, the sports betting landscape in New York is anticipated to see a dynamic resurgence with the NFL season's return. This robust rebound is projected as fans and bettors once again focus their energies and finances on a full slate of high-stakes events.