Player Spending Plummets to New Lows in New York's Online Sports Betting Market
As the sports world transitioned into its quieter summer months, New York's online sports betting market experienced a significant dip in activity. June saw player spending on online sports bets fall to the lowest level in ten months, echoing the calm typical of this period. According to the latest figures, the total monthly handle for June was recorded at $1.47 billion, marking a startling 25.4% drop from May's $1.97 billion total.
This decline is particularly notable given that June's handle still represented a 25.6% increase from the same month last year, demonstrating a complex landscape where year-on-year growth doesn't necessarily translate to month-on-month stability. Gross gaming revenue also followed a downward trajectory, standing at $133.9 million for June, a 34.1% decrease from May’s more robust earnings, though still 29.0% higher than last year’s figures.
Summer Traditions and Seasonal Impact
The seasonal influence on sports betting is no secret. The summer months, June included, traditionally generate less betting activity across New York and the rest of the United States. Multiple factors contribute to this trend, including the conclusion of major leagues such as the NBA and NFL, which wrapped up their finals in early June. With neither championship featuring a New York team, local betting interest waned further.
June, although typically the busiest of the quieter summer months, presents fewer high-stakes events that captivate bettors. Major sports leagues enter their off-seasons, and while the MLB season runs through the summer, it does not usually drive significant betting activity. Nonetheless, June does include notable events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which took place in the US for only the second time this year.
Leading Operators and Revenue Contributions
Among the operators, FanDuel led the pack by generating $67.1 million from total wagers amounting to $571.3 million in June. This significant revenue translated into a contribution of $34.2 million in taxes for June alone, with FanDuel having paid nearly $998.3 million to state coffers since January 2022. DraftKings followed with earnings of $40.9 million from a handle of $521.6 million.
Caesars also made its mark, with customers staking $127.7 million, resulting in $6.8 million in revenue. BetMGM and Fanatics reported similar performance, both posting $6.8 million in revenue from $100.6 million and $67.3 million in wagers, respectively. Of note, Fanatics had an impressive hold percentage of 9.96% in June.
Other notable operators include Rush Street Interactive, which generated $2.5 million from $68.8 million in total wagers, BallyBet with revenues of $658,294, and Resorts World posting $572,891 in revenue. Wynn Interactive reported a modest $66,665 off $1.5 million wagered, reflecting the varied performance among the market's players.
Looking Forward: The NFL Season on the Horizon
The seasonal lull observed in June will likely deepen in July, with betting activity expected to decline further. A slight recovery is anticipated in August as anticipation builds for the NFL season, which consistently drives high engagement and betting volume. The sports betting market in New York, and indeed across the United States, typically sees a robust resurgence with the onset of the NFL season. This cyclical pattern underscores the substantial influence of major leagues and high-stakes games on betting activity.
As New York’s market navigates these fluctuations, the return of high-stakes sporting events promises to rekindle bettor enthusiasm and bring the figures back to their more dynamic state. Until then, operators and stakeholders will be closely monitoring the market, readying themselves for the surge that accompanies the return of America's favorite sport.