In a surprising turn of events, player spending on online sports betting in New York nosedived to its lowest total in ten months as of June, registering just $1.47 billion. This figure reflects a 25.4% dip compared to May's robust $1.97 billion handle. However, it also marks a substantial 25.6% rise from June of the previous year, indicating a complex landscape for the sports betting market in the state.
June's Complicated Balancing Act
The gross gaming revenue for online sports betting in June was relatively underwhelming at $133.9 million. While this revenue indicates a significant 29.0% boost compared to the same month last year, it fell short by 34.1% compared to May's earnings. The decline in revenue and handle is partly attributed to the conclusion of the NBA and NFL finals in early June—neither of which featured a New York team vying for the championship.
The summer months traditionally see a dip in sports betting activities across New York and the broader United States. With major sports leagues in their off-seasons and fewer high-stakes events, the market enters a quiet phase. Interestingly, this June's gross gaming revenue was barely higher than the $131.4 million posted in February, underscoring the sluggish summer activity.
Operator Performance
FanDuel continued to lead the pack among operators, posting $67.1 million in revenue from a total of $571.3 million in wagers for June. The company also made a significant contribution to state coffers with $34.2 million in taxes for the month, bringing their total tax contributions to nearly $998.3 million since January 2022.
DraftKings followed closely with $40.9 million generated from a $521.6 million handle. Caesars, on the other hand, saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM also reported revenues of $6.8 million from $100.6 million wagered.
Other operators like Fanatics reported a handle of $67.3 million, generating $6.7 million in revenue with a hold percentage of 9.96%. Rush Street Interactive managed to generate $2.5 million from $68.8 million in total wagers, while smaller operators like BallyBet and Resorts World posted revenues of $658,294 and $572,891 respectively. Wynn Interactive generated the least, securing $66,665 off $1.5 million wagered.
Seasonal Impact
The MLB season, running through the summer, does not traditionally drive significant betting activity, contributing to the slower market. While June includes notable events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, these are not enough to offset the general decline. The Copa América is taking place in the U.S. for only the second time, yet it still hasn't significantly impacted the numbers.
June often stands as the strongest of the summer months for sports betting before the market typically declines further in July. Both bettors and operators anticipate a slight recovery in August, followed by a significant boost in activity when the NFL season kicks off in September. The NFL season consistently drives high levels of engagement and wagering, which could lead to a robust resurgence in New York's sports betting market.
Future Expectations
Given the current trends, a drop in betting activity during June is not unexpected. The sports betting market in New York, like elsewhere, follows a distinct seasonal pattern. Major sports leagues in their off-seasons and the lack of high-stakes events mean fewer opportunities for bettors. However, analysts are optimistic that the market will gain momentum later this year as the NFL season begins, reigniting enthusiasm and significantly boosting both the handle and revenue figures.
In the interim, operators will have to navigate this quieter period, perhaps focusing on promotions and customer engagement strategies to maintain interest. For New York's bettors and the state’s coffers, the anticipation builds towards a thrilling NFL season that promises to bring the market back to life.