New York Sees Drop in Online Sports Betting Activity
In an unexpected turn of events, player spending on online sports betting in New York has nosedived to its lowest total in ten months as of June. The revenue figures for New York's online sports betting sector also followed suit, hitting the smallest monthly total since February. Despite this, the total handle for June was recorded at $1.47 billion, which showcases a substantial 25.6% increase from June of last year.
However, the year-on-year figures paint only part of the picture. When compared to May 2023, June saw a significant 25.4% drop from a handle of $1.97 billion. This sharp decline in spending levels hasn't been seen since August last year, when consumers wagered $1.11 billion. Gross gaming revenue for June stood at $133.9 million, a figure that is 29% higher year-on-year but falls 34.1% short of May's total earnings.
The June Effect
The conclusion of both the NBA and NFL finals in the early weeks of June likely contributed to this downward trend. Notably, neither of the finals featured a New York team competing for the championship. This absence may have affected local engagement and wagers. Indeed, the summer months are traditionally quieter for sports betting across New York and the broader United States.
FanDuel led the pack among operators, posting $67.1 million in revenue from $571.3 million in total wagers for June. Their significant contribution of $34.2 million in taxes for the month underlines their major role in the market. FanDuel has paid nearly $998.3 million into state coffers since January 2022, marking its substantial economic impact.
Other Major Players
DraftKings followed as a strong competitor, generating $40.9 million from a $521.6 million handle. Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM reported the same revenue figure but from $100.6 million wagered. Fanatics also registered considerable activity, with a handle of $67.3 million and revenue of $6.7 million, yielding a hold percentage of 9.96% for June.
Meanwhile, Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet and Resorts World posted more modest revenues of $658,294 and $572,891, respectively. Wynn Interactive reported $66,665 off $1.5 million wagered, highlighting the diversity in performance among different operators.
Factors Behind the Numbers
The summer months tend to usher in a lull for sports betting, primarily because major sports leagues are in their off-seasons. The MLB season, despite running through the summer, traditionally does not drive significant betting activity. June includes events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, the latter of which is being held in the US for only the second time. Yet, these events do not typically make up for the absence of major sports leagues.
Interestingly, June is often the strongest summer month for sports betting. The number of bets generally declines further in July before seeing a slight recovery in August. The sports betting market tends to heat up again in September with the onset of the NFL season, which consistently drives high engagement and wagering.
Looking Ahead
Given the cyclical nature of the sports calendar, a drop in betting activity in June is to be expected. While the decline has been more pronounced this year, the market is likely to see a robust resurgence with the start of the NFL season. Operators and analysts alike will be closely watching for this shift, as the intensity of football's return often reenergizes the market and restores higher levels of engagement and wagering.
While FanDuel, DraftKings, and other major players have managed to navigate this quieter period with relative success, it’s clear that the bustling activity of the fall sports season will be crucial in shaping the next phase of growth for New York's online sports betting market.