Player spending on online sports betting in New York has seen a significant downturn, hitting its lowest total in ten months as of June. The revenue figures for online sports betting in the state also dipped, recording the smallest monthly total since February. Despite these declines, June's total handle stood at $1.47 billion—an impressive 25.6% increase from the same month last year. However, this figure also represents a 25.4% drop compared to May's $1.97 billion.
Interestingly, New York has not experienced such low wagering levels since August 2023, when consumers spent $1.11 billion. Gross gaming revenue for June was $133.9 million, marking a 29.0% increase year-on-year. Nevertheless, this revenue figure fell 34.1% short of May's total earnings. One contributing factor could be the conclusion of the NBA and NFL finals in the early weeks of June, with neither event featuring a New York team vying for the championship—a situation that likely curtailed local betting enthusiasm.
FanDuel Leads the Pack
Among the operators, FanDuel emerged as the clear leader. The company posted $67.1 million in revenue from a total of $571.3 million wagers for June, contributing $34.2 million in taxes for the month. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers. DraftKings also showed strong numbers, generating $40.9 million from a $521.6 million handle.
Other operators like Caesars and BetMGM reported revenues of $6.8 million each, although from differing wager totals of $127.7 million and $100.6 million, respectively. Fanatics reported a handle of $67.3 million, translating to $6.7 million in revenue with a hold percentage of 9.96%. Meanwhile, smaller operators like Rush Street Interactive, BallyBet, and Wynn Interactive also made their marks, although with more modest figures.
Sports Betting Seasonal Trends
June's quieter performance can also be attributed to seasonal trends in the sports calendar. The summer months generally see less betting activity across New York and the United States. The MLB season, which runs through the summer, traditionally does not drive significant betting activity. Major sports leagues are in their off-seasons, leaving fewer high-stakes events to captivate bettors. Events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament—which took place in the U.S. for only the second time this year—did offer some betting opportunities, but not enough to counterbalance the general decline.
Even though June is typically the strongest of the summer months for sports betting, it's normal to witness a further decline in July, followed by a minor recovery in August. Reports indicate that the number of bets generally decreases further in July, but there's a slight uptick in August.
A Promising Future
Despite June's lackluster figures, industry experts predict a robust resurgence for the sports betting market in New York with the onset of the NFL season in September. The NFL consistently drives high engagement and wagering, likely reassuring operators and state officials alike of a future rebound. As the season heats up, it's expected that betting activity will significantly ramp up, drawing in more engagement and revenue.
June might have been a low for the market, but the year's comparative performance and anticipation of busier months ahead ensure that the story of New York's online sports betting is far from over. With the NFL season just around the corner, the market is poised for a comeback that could offset the quieter summer months, reinforcing New York’s prominent position in the landscape of online sports betting.