In a notable downturn, player spending on online sports betting in New York has plunged to unprecedented lows, recording the smallest total in ten months as of June. This month's revenue figures also hit the lowest since February, painting a bleak picture for the Empire State's betting landscape.
New York’s total monthly handle for June stood at $1.47 billion, which, despite being a 25.6% increase from the previous year, marked a significant 25.4% drop compared to May's robust $1.97 billion. This drop appears in line with historical patterns, as the summer months have traditionally been quieter for sports betting across New York and the United States. Notably, online sports betting hadn't seen such low spending levels since August 2023, when the handle was documented at $1.11 billion.
Revenue Takes a Hit
Gross gaming revenue for June was recorded at $133.9 million, representing a 29.0% rise year-on-year. Nonetheless, this figure fell 34.1% short of May's earnings. The slight comparison to February's $131.4 million signals an impending trend reflective of the summer slump. Analysts point to the conclusion of significant sporting events—the NBA and NFL finals in early June—as contributing factors, especially given that no New York teams were in contention for the championships.
The interplay of numerous variables seems to have driven this decline. The MLB season, which spans the summer months, typically doesn't generate substantial betting heat. June does feature notable events like horse racing’s Belmont Stakes, golf’s US Open, and the Copa América, but in the absence of higher-stakes events, a descent in betting activity during June follows logically. Indeed, betting activity tends to dip even further in July, with a minor recovery in August, before the NFL season rekindles the fervor in September.
Breakdown of Operator Performances
Amidst the downturn, FanDuel led the operators, posting $67.1 million in revenue from a whopping $571.3 million in total wagers for June. Maintaining its top-tier status, FanDuel contributed a significant $34.2 million in taxes, pushing its state contributions to nearly $998.3 million since January 2022. Similarly, DraftKings generated $40.9 million from a $521.6 million handle in June, underlining its robust presence in the market.
Caesars and BetMGM also reported noteworthy figures. Caesars' customers staked $127.7 million, resulting in $6.8 million in revenue, while BetMGM saw $6.8 million from $100.6 million wagered. Emerging player Fanatics reported a handle of $67.3 million, translating to $6.7 million in revenue, with an impressive hold percentage of 9.96% for June.
The landscape of smaller operators included 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, a smaller player in the market, reported generating $66,665 off a modest $1.5 million wagered.
Expectations for the Upcoming Months
June's decline was not unforeseen, given the historic trend and the completion of major sports leagues' seasons. As the sports calendar transitions into the quieter summer months, the market experiences a predictable lull in betting activity. However, the outlook remains optimistic with a robust resurgence anticipated come September, driven by the onset of the NFL season. The NFL consistently fuels high levels of engagement and wagering, providing a much-needed boost to the betting market.
In conclusion, while the current figures reflect a downturn, they align with the usual seasonal ebb and flow of the sports betting market. With the approach of fall and the return of major sporting events, New York’s online sports betting market is poised for a significant rebound, reaffirming its dynamic and ever-evolving nature.