Player spending on online sports betting in New York has seen a stark decline to its lowest level in ten months as of June, signaling a notable shift in wagering behavior during the traditionally quieter summer months.
Revenue figures for June show an interesting landscape. The total handle for the month tallied at $1.47 billion, marking a significant 25.6% increase from the same period last year. However, this figure also represents a considerable 25.4% drop compared to May's handle of $1.97 billion. The last time spending was this low was in August 2023, with consumers betting $1.11 billion. This fluctuation illustrates the seasonal ebb and flow typical of the sports betting market.
Revenue Trends and Comparisons
June's gross gaming revenue stood at $133.9 million, a notable figure in itself. This represents a 29.0% increase year-on-year but also reflects a 34.1% decrease compared to May's total earnings. It is worth mentioning that June's revenue was only slightly higher than the $131.4 million posted in February, another relatively low month for New York’s sports betting ecosystem.
The month saw the conclusion of major sporting events such as the NBA and NFL finals. However, with no New York teams contending for the championship, local interest likely waned. Additionally, June is a period where many major sports leagues are in their off-seasons, reducing the number of high-stakes events that typically drive betting activity.
Operator Performance
Among the operators, FanDuel emerged as the leader, generating $67.1 million in revenue from $571.3 million in total wagers. The company contributed a substantial $34.2 million in taxes for June and has paid nearly $998.3 million into state coffers since January 2022. DraftKings also showed impressive figures, with $40.9 million in revenue from a $521.6 million handle.
Caesars and BetMGM reported revenues of $6.8 million each, from handles of $127.7 million and $100.6 million, respectively. Fanatics reported a handle of $67.3 million, converting this into $6.7 million in revenue with a hold percentage of 9.96%.
Among the smaller players, Rush Street Interactive generated $2.5 million from $68.8 million in wagers. Meanwhile, BallyBet and Resorts World reported revenues of $658,294 and $572,891, respectively. Wynn Interactive lagged behind, producing only $66,665 from $1.5 million wagered.
Seasonal Dynamics
Summer months have historically been quieter for sports betting across New York and the United States. Despite the MLB season running through summer, it traditionally does not drive significant betting activity. June also included events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament—the latter being held in the US for only the second time. Even so, June is often the strongest of the summer months for sports betting, with activity generally declining further in July before seeing a slight recovery in August.
The drop in betting activity in June is not entirely unexpected given the culmination of the NBA and NFL finals and the general off-season for many major sports leagues. With fewer high-stakes events captivating bettors, a slump in June is almost inevitable. However, industry stakeholders remain optimistic as the market is likely to see a robust resurgence with the onset of the NFL season in September, which consistently drives high engagement and wagering.
In conclusion, while June has seen a dip in New York's online sports betting figures, it largely aligns with seasonal trends. Operators like FanDuel and DraftKings continue to perform strongly, asserting their dominance in the market. As the summer progresses, there is an air of anticipation for the return of the NFL season, poised to reignite the betting fervor across the state.