In a surprising turn of events, player spending on online sports betting in New York has plummeted to its lowest level in ten months as of June, marking a significant downturn in the market. Revenue figures for online sports betting in the Empire State hit the smallest monthly total since February, reflecting the fluctuations characteristic of the betting industry.
New York’s total monthly handle for June was recorded at $1.47 billion, a substantial 25.6% increase from June last year. However, this was a notable 25.4% drop compared to May's $1.97 billion. Not since August 2023, when consumers wagered $1.11 billion, have betting levels been this low.
Revenue and Seasonal Trends
June's gross gaming revenue stood at $133.9 million, showcasing a 29.0% year-on-year increase. Despite this, it fell 34.1% short of May's total earnings. The conclusion of the NBA and NFL finals in early June, neither of which featured a New York team in contention, may have played a role in the decrease. Revenue for June barely surpassed the $131.4 million posted in February, highlighting the seasonal ebb and flow in the betting landscape.
Summer months traditionally see a dip in sports betting activity across New York and the United States. Various factors contribute to this trend, including the conclusion of major sports leagues' seasons. The MLB season, which runs through the summer, traditionally does not drive significant betting activity.
Performance of Major Operators
Amidst the overall decline, FanDuel maintained its position as the leading operator, posting $67.1 million in revenue from $571.3 million in total wagers for June. The company made a significant contribution of $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since January 2022.
DraftKings followed closely, generating $40.9 million from a $521.6 million handle. Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, while BetMGM reported $6.8 million in revenue from $100.6 million wagered.
Other operators also saw various levels of activity. Fanatics reported a handle of $67.3 million and revenue of $6.7 million, with a hold percentage of 9.96% in June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet posted revenues of $658,294. Resorts World and Wynn Interactive rounded out the list, with revenues of $572,891 and $66,665 off $1.5 million wagered, respectively.
Impact of Events and Looking Forward
June includes significant events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament—the latter taking place in the US for only the second time this year. Still, with major sports leagues in their off-seasons, there were fewer high-stakes events captivating bettors. This drop in betting activity was to be expected, given June’s position in the sports calendar.
Interestingly, June is typically the strongest of the summer months for sports betting, which makes the current downturn even more notable. The number of bets often declines further in July, with a slight recovery in August as anticipation builds ahead of the NFL season. The sports betting market traditionally heats up again in September when the NFL season kicks off, driving high engagement and wagering.
Given the cyclical nature of sports betting, the market in New York is likely to see a robust resurgence with the start of the NFL season. While June's figures tell a story of decreased activity and revenues, they also underscore the predictable ebb and flow that marks the sports betting industry. The industry’s ability to bounce back as major leagues resume play highlights the resilience and passionate engagement of bettors.