December's Decline in New York Sports Betting: A Comprehensive Overview
New York's sports betting market has experienced a significant downturn, marking its lowest spending levels in ten months as of June. The total handle for the month registered at $1.47 billion, a staggering drop from May's $1.97 billion. Despite the decline from the previous month, June's figures indicate a 25.6% year-on-year increase.
This decrease in betting activity is not entirely unexpected. The conclusion of the NBA and NFL finals in early June took away major betting opportunities, with neither the NBA nor NFL finals featuring a New York team, further impacting local engagement. Historically, summer months, including June, witness a dip in sports betting across New York and the broader United States. With major sports leagues in their off-season and fewer high-stakes events, the decline was anticipated.
Gross gaming revenue also took a hit, reaching $133.9 million in June, a significant 34.1% decline from May's earnings but still marking a 29.0% increase compared to the previous year. The June revenue barely surpassed February's $131.4 million, underscoring the impact of the lean betting period.
Operator Performance Amid Decline
Despite the overall slump, leading operators managed to post considerable revenues. FanDuel emerged as the top operator, generating $67.1 million in revenue from $571.3 million in wagers, and contributing $34.2 million in taxes. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers.
DraftKings followed, posting $40.9 million in revenue from a $521.6 million handle. Caesars reported a handle of $127.7 million and generated $6.8 million in revenue, while BetMGM held steady with $6.8 million in revenue from $100.6 million wagered. Other notable performances included Fanatics, with a handle of $67.3 million and revenue of $6.7 million, showing a hold percentage of 9.96%.
Smaller operators also made their mark. Rush Street Interactive generated $2.5 million from a $68.8 million handle, while BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive managed to generate $66,665 from a modest $1.5 million handle. These figures highlight the diverse landscape of New York's sports betting market, with both major and minor players contributing to the overall revenue.
Seasonal Trends and Market Dynamics
The MLB season, which runs through the summer, traditionally does not drive substantial betting activity compared to other sports, reflecting in the monthly figures. June also featured events such as horse racing's Belmont Stakes and golf’s US Open. Additionally, the Copa América football tournament took place in the US for only the second time, but these events could not offset the general summer lull in sports betting.
While June is typically the strongest of the summer months for sports betting, the number of bets is expected to decline further in July, with a slight recovery anticipated in August. The market is projected to heat up again in September with the onset of the NFL season, which consistently drives high engagement and wagering activities. Bettors and operators alike look forward to this period for a robust resurgence in the market.
Looking Ahead
In summary, while June's figures may appear concerning at first glance, they align with traditional seasonal trends in the sports betting industry. The conclusion of major sports leagues' finals and the onset of quieter summer months have predictably led to a dip in activity. However, the year-on-year growth and strong performances by leading operators suggest a resilient and steadily growing market. As the NFL season approaches, New York’s sports betting landscape is poised for renewed vigor and engagement.