In a surprising twist for New York's thriving online sports betting market, player spending has plunged to its lowest total in ten months as of June. The state saw an online sports betting handle of $1.47 billion for the month, marking a significant 25.4% drop from May’s $1.97 billion. Despite this downturn, June’s handle still represents a notable 25.6% increase from the same month last year.
Reflecting the seasonal ebb, New York’s gross gaming revenue for June also took a hit, standing at $133.9 million, which is 34.1% lower compared to May. Yet, there's a silver lining—the year-on-year revenue is up by 29.0%, indicating a robust underlying growth in the market.
Seasonality and Market Dynamics
Several factors contributed to this dip in activity. The NBA and NFL finals, major drivers of betting, concluded in early June without the involvement of any New York teams. Historically, the summer months tend to be quieter for sports betting in New York and across the United States. Major sports leagues are in their off-seasons, with fewer high-stakes events captivating bettors. Additionally, although June is often the most active summer month for sports betting—thanks to events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament—it still doesn’t create the same level of excitement or betting activity as the fall.
Interestingly, the MLB season, which runs through the summer, traditionally does not drive significant betting activity. This year, June included the Copa América taking place in the US for only the second time, yet it failed to offset the general decline in wagers.
Operator Performance
Leading the pack, FanDuel posted remarkable figures, generating $67.1 million in revenue from $571.3 million in total wagers for June. The operator’s continued success added $34.2 million in taxes to state coffers, contributing to an impressive total of nearly $998.3 million since January 2022. Following closely, DraftKings churned out $40.9 million in revenue from a $521.6 million handle.
Caesars and BetMGM both saw notable activity, with Caesars customers staking $127.7 million, resulting in $6.8 million in revenue. BetMGM mirrored this performance, also reporting $6.8 million in revenue from $100.6 million wagered.
Fanatics, still emerging in the market, reported a handle of $67.3 million and revenue of $6.7 million, boasting an impressive hold percentage of 9.96% in June. Conversely, smaller operators such as Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive saw more modest results. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet posted revenues of $658,294, Resorts World reported $572,891, and Wynn Interactive garnered $66,665 off $1.5 million wagered.
Looking Ahead
As June marked a slower period, these figures highlight the seasonal nature of sports betting. The number of bets traditionally declines further in July, followed by a slight recovery in August. However, the market is poised for a robust resurgence with the onset of the NFL season in September, which consistently drives high engagement and wagering.
While June’s figures may appear discouraging at first glance, they align with historical patterns, and the year-on-year growth reflects a deeper, more resilient market. As New York continues to refine its online sports betting landscape, the expectation of a strong comeback in the fall remains a promising prospect for all stakeholders involved.