A Dip in New York's Online Sports Betting Landscape for June
June has seen a significant downturn in player spending on online sports betting in New York, reaching its lowest total in ten months. July represented a challenging period for the betting industry, with revenue and handle figures reflecting a notable drop.
Monthly Handle Analysis
New York's total monthly handle for June was recorded at $1.47 billion, marking a 25.6% increase compared to June of the previous year. However, this figure signifies a 25.4% decline compared to May's substantial handle of $1.97 billion. This dramatic fall marks June as the month with the lowest handle since August 2023, when the stakes were at $1.11 billion.
Revenue Trends
Gross gaming revenue for June stood at $133.9 million, which, despite being 29.0% higher year-on-year, fell 34.1% short of May’s total earnings. The revenue for June was marginally above February's figure of $131.4 million, highlighting the variability in consumer betting behavior.
Impact of Sporting Events
The conclusion of the NBA and NFL finals in the early weeks of June likely played a significant role in the reduced betting activity. With neither of these finals featuring New York teams, local engagement may have waned, contributing to the lower figures.
Additionally, the summer months have historically been quieter for sports betting across both New York and the broader United States. Although the MLB season runs through the summer, it does not traditionally drive substantial betting activity. June does feature notable events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which this year is taking place in the US for only the second time.
Operator Performance
Among the operators, FanDuel led in June, posting $67.1 million in revenue from $571.3 million in total wagers. FanDuel's tax contribution for the month was a robust $34.2 million. Since January 2022, FanDuel has been a significant contributor to state coffers, paying nearly $998.3 million in taxes.
DraftKings followed, generating $40.9 million from a $521.6 million handle. Caesars and BetMGM also saw notable activity, with customers staking $127.7 million, resulting in $6.8 million in revenue for Caesars, and $100.6 million wagered at BetMGM, yielding similar revenue.
Fanatics reported a handle of $67.3 million and revenue of $6.7 million, with a hold percentage of 9.96% for June. Other operators, like Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive, saw more modest revenues, reflecting the overall quieter betting environment.
Future Prospects
June is generally the strongest of the summer months for sports betting, but a decline in activity is expected in July, with a slight recovery anticipated in August. The sports betting market traditionally heats up again in September with the onset of the NFL season, which consistently drives high engagement and wagering.
While major sports leagues are in their off-seasons in June, leading to fewer high-stakes events that captivate bettors, the market is likely to see a robust resurgence come autumn. The patterns observed this June reinforce the cyclical nature of the sports betting industry, impacted heavily by the sporting calendar and event prominence.
New York’s online sports betting market reflects broader seasonal trends and engagement levels tied to major sporting events. As the NFL season approaches, a significant uptick in betting activity is anticipated, potentially making up for the summer slump and driving the market forward.