Player spending on online sports betting in New York has taken a significant dive, reaching its lowest total in ten months as of June. This downward trend in revenue figures saw the smallest monthly total since February, signaling a shift in the betting landscape for the state.
Declining Trends in Online Betting
The total monthly handle for June was recorded at $1.47 billion, marking a 25.6% increase from June of last year. However, this figure also represents a 25.4% drop compared to May's $1.97 billion. Such a stark decline hasn't been observed since August 2022, when consumers wagered $1.11 billion.
June's gross gaming revenue stood at $133.9 million. Despite this being 29.0% higher year-on-year, it fell significantly short—by 34.1%—compared to May's total earnings. This revenue figure was only marginally higher than the $131.4 million posted in February, signaling a harder hit during the summer months.
Impact of Seasonal Sports and Major Events
The summer months are traditionally quieter for sports betting within New York and the United States at large. The NBA and NFL finals concluded in the first few weeks of June, and neither featured a New York team vying for the championship, reducing local betting interest. In contrast, the MLB season—extending through the summer—does not traditionally drive substantial betting activity.
June includes prestigious events like horse racing's Belmont Stakes and golf’s US Open, along with the Copa América football tournament, which is being held in the US for only the second time. However, these events did not sufficiently bolster the state's betting figures.
Leading Operators and Financial Contributions
Among the operators, FanDuel emerged as a leader, posting $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel’s notable contribution to state coffers amounted to $34.2 million in taxes for the month. Since January 2022, FanDuel has paid nearly $998.3 million into state funds.
DraftKings generated $40.9 million in revenue from a $521.6 million handle in June, while Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM reported earnings 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% in June.
Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet posted revenues of $658,294, and Resorts World reported revenues of $572,891. Wynn Interactive generated $66,665 off $1.5 million wagered.
Seasonal Expectations and Future Projections
June is typically the strongest of the summer months for sports betting, with numbers often declining further in July, followed by 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.
This period of decreased activity is to be expected as major sports leagues are in their off-seasons in June, resulting in fewer high-stakes events to captivate bettors. Despite the dip, the sports betting market in New York is likely to see a robust resurgence with the return of the NFL season, aligning with historical trends and betting patterns.