Summer Slump: New York Faces Dip in Online Sports Betting Activity
Player spending on online sports betting in New York has seen a significant decline, reaching its lowest point in ten months as of June. This decline in activity has witnessed revenue figures for online sports betting in the state dropping to levels not seen since February.
The total monthly handle for June was recorded at $1.47 billion, reflecting a substantial 25.6% increase from June of the previous year. However, this figure represents a steep 25.4% drop compared to the $1.97 billion wagered in May. Such a level of reduced spending hasn't been observed since August 2023, when consumers wagered a total of $1.11 billion.
June's gross gaming revenue stood at $133.9 million, marking a 29.0% year-on-year improvement. However, this revenue figure fell 34.1% short of May's total earnings. Comparatively, the revenue for June barely surpassed the $131.4 million posted in February.
Several factors contributed to this decline in player activity. Both the NBA and NFL finals concluded in the first few weeks of June, with neither championship featuring a New York team. This absence of local representation in high-stakes events likely dampened enthusiasm and participation among state bettors.
Additionally, the summer months are traditionally quieter periods for sports betting across New York and the United States. With most major sports leagues in their off-seasons, there are fewer high-stakes events captivating bettors. Noteworthy, too, is that June includes significant sporting events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, the latter taking place in the US for only the second time this year. Despite these events, June remains typically the strongest of the summer months for sports betting. A further decline in activity is often seen in July, followed by a slight recovery in August.
Leading Operators and Their Figures
Among the various operators, FanDuel continued its lead, posting $67.1 million in revenue from $571.3 million in total wagers for June. The company made a notable contribution of $34.2 million in taxes for the month, pushing its total contribution to nearly $998.3 million since January 2022.
DraftKings followed with $40.9 million generated from a $521.6 million handle in June. Caesars experienced customer stakes totaling $127.7 million, translating into $6.8 million in revenue. BetMGM reported $6.8 million in revenue from $100.6 million wagered, while Fanatics reported a handle of $67.3 million and revenue of $6.7 million, achieving a hold percentage of 9.96%.
Other operators also posted varying figures. Rush Street Interactive 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, despite a modest handle of $1.5 million, generated $66,665 in revenue.
Looking Ahead
The MLB season, running throughout the summer, traditionally does not drive significant betting activity, contributing to the dip seen in June. With major sports leagues in their off-seasons and fewer high-stakes events captivating bettors, a decline in betting activity during this period is to be expected.
However, as the summer draws to a close, the sports betting market in New York is poised for a robust resurgence. The NFL season, beginning in September, consistently drives high engagement and wagering. Historically, the market heats up considerably with the onset of the NFL season, promising renewed enthusiasm and increased activity from players.
The current figures from June highlight the cyclical nature of sports betting activity, with a downturn during the quieter summer months followed by a predictable upswing with the return of major sports leagues. As operators gear up for the NFL season, the focus will be on maximizing engagement and capturing the heightened interest of bettors across the state.