As the summer sun blazes over New York, the state’s online sports betting market has encountered a noticeable cool-down, recording a significant dip in player spending in June. In a sharp turn from recent months, the revenue figures for online sports betting in the Empire State have fallen to their lowest since February, illustrating a seasonal ebb in betting enthusiasm.
In June, New York’s total monthly handle stood at $1.47 billion, reflecting a 25.4% drop from May's robust $1.97 billion. However, when compared to the same period last year, this figure represents a 25.6% increase, indicating a year-on-year growth that underscores the ever-rising interest in online sports betting despite the seasonal fluctuations.
Revenue Figures and Seasonal Trends
Gross gaming revenue for June was reported at $133.9 million, a 29.0% increase from June of the previous year. Yet, this represented a substantial 34.1% decline from May's earnings, highlighting the impact of seasonal sports cycles on betting activities. The conclusion of the NBA and NFL finals, neither of which featured New York teams, played a significant role in this downturn.
Revenue figures for June were only marginally higher than those posted in February, when the state saw $131.4 million in gross gaming revenue. This trend aligns with the traditional perception of summer as a quieter period for sports betting, not just in New York but across the United States.
Operator Performance
Among the operators, FanDuel emerged as the leader, amassing $67.1 million in revenue from a total of $571.3 million in wagers for June. This performance translated to a substantial tax contribution of $34.2 million for the month, pushing FanDuel's total state tax contributions to nearly $998.3 million since January 2022. Close on its heels, DraftKings generated $40.9 million from a $521.6 million handle.
Other operators like Caesars and BetMGM also made notable contributions. 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. Fanatics, with a hold percentage of 9.96%, had a handle of $67.3 million, yielding $6.7 million in revenue. Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive posted modest returns, reflecting the overall market's subdued state during summer.
Sporting Events and Their Impact
The summer sports calendar, featuring the MLB season, horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, did little to drive significant betting activity. The MLB, despite running through the summer, traditionally does not generate substantial betting interest. June did see the Copa América being held in the US for only the second time, but the absence of high-stakes events and New York teams in championships likely contributed to the downturn.
Market Dynamics and Future Prospects
June has, however, been typically one of the stronger months of the summer for sports betting, with betting activity generally declining further in July before witnessing a slight recovery in August. The market is poised for a robust resurgence in September with the kickoff of the NFL season, which consistently drives high engagement and wagering.
The ebb and flow in New York’s online sports betting market underscores the broader seasonal trends affecting the industry. The decline in betting activity during June, a time when major sports leagues are in their off-seasons, is predictable. As operators and bettors alike anticipate the return of fall sports, New York’s sports betting revenue is expected to rebound, driven by the high-stakes excitement of the NFL season.