Player spending on online sports betting in New York has seen a significant dip, hitting its lowest total in ten months as of June. The state's revenue from online sports betting also recorded its smallest monthly total since February, making it a notable point of concern as the summer progresses.
New York’s total handle for June stood at $1.47 billion, marking a 25.6% increase from June of last year but a 25.4% drop compared to May's $1.97 billion. This sharp decline highlights the variable nature of the sports betting market, influenced significantly by the sports calendar and high-profile events. As it stands, June's spending levels have not been this low since August 2023, when the handle was recorded at $1.11 billion.
The gross gaming revenue for June reached $133.9 million, which is 29.0% higher year-on-year. However, compared to May, this figure fell short by 34.1%, showing a considerable month-to-month decrease. These fluctuations are largely attributed to the conclusion of the NBA and NFL finals in the first few weeks of June—neither of which featured a New York team, potentially dampening local interest and resultant betting activity.
Seasonal Trends and Operator Performance
Summer months traditionally see a dip in sports betting activity across New York and the broader United States. June, typically the strongest summer month for this market, was no exception. The MLB season—running through the summer—does not traditionally drive significant betting activity. Other events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América tournament, while noteworthy, fail to capture the same high-stakes allure as major league seasons. The Copa América being held in the US for only the second time created some interest, but not enough to counteract the overall downturn.
FanDuel led the pack among operators, posting a commendable $67.1 million in revenue from $571.3 million in wagers for June. Their tax contribution for the month was $34.2 million, bringing their total contributions to state coffers since January 2022 to nearly $998.3 million. In stark comparison, DraftKings generated $40.9 million from a $521.6 million handle, and Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue.
BetMGM reported $6.8 million in revenue from $100.6 million wagered, while Fanatics recorded a handle of $67.3 million and revenue of $6.7 million, showing a hold percentage of 9.96% for June. Meanwhile, Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, BallyBet posted revenues of $658,294, and Resorts World posted $572,891. Wynn Interactive rounded out the numbers with $66,665 off $1.5 million wagered.
Future Outlook
June's numbers are a reflection of the seasonal ebb and flow inherent to the sports betting industry. With the major leagues in their off-seasons and fewer high-stakes events captivating bettors, a drop in activity was anticipated. The number of bets often declines even further in July, with a slight recovery commonly seen in August. However, all eyes are on September when the NFL season kicks off, historically driving high engagement and wagering.
The sports betting market in New York is poised for a robust resurgence with the advent of the NFL season. As the summer lull comes to a close and the excitement of fall sports reignites betting enthusiasm, stakeholders can expect to see revitalized activity and potentially record-breaking handles once again.