Player spending on online sports betting in New York has hit its lowest total in ten months as of June, signaling a significant shift in the market dynamics. Revenue figures for online sports betting also plummeted, marking the smallest monthly total since February. The total monthly handle for June was recorded at $1.47 billion, which, while impressive, still represents a 25.4% drop compared to May's $1.97 billion. It's worth noting, however, that this number is still a 25.6% increase from June of last year, reflecting the growing popularity of sports betting overall.
Gross gaming revenue for June stood at $133.9 million, showing a 29.0% year-on-year increase, yet falling 34.1% short of May's total earnings. The significant decrease can be partially attributed to the conclusion of major sporting events early in the month. The NBA and NFL finals, none of which featured a New York team, wrapped up in the first few weeks of June. This absence of local team involvement likely contributed to the decreased betting activity.
Operators and Market Leaders
FanDuel led the pack among operators, posting $67.1 million in revenue from $571.3 million in total wagers for June. The company also made a substantial tax contribution of $34.2 million, bringing its total contributions to state coffers to nearly $998.3 million since January 2022. Not far behind, DraftKings generated $40.9 million from a $521.6 million handle.
Other notable performances include Caesars, which saw customers stake $127.7 million, resulting in $6.8 million in revenue, and BetMGM, which reported $6.8 million in revenue from $100.6 million wagered. Fanatics also demonstrated significant activity with a handle of $67.3 million and revenue of $6.7 million, achieving a hold percentage of 9.96% for June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively.
Seasonal Trends and Future Prospects
The drop in spending levels is not entirely unexpected, given the seasonal nature of sports betting. June traditionally marks the beginning of a quieter period for sports betting across New York and the United States. Major sports leagues are in their off-seasons, and there are fewer high-stakes events to captivate bettors. Although June includes marquee events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, these do not generate the same volume of betting activity as the major leagues.
Moreover, the MLB season, which runs through the summer, traditionally does not drive significant betting activity, further contributing to the decline. While June is typically the strongest of the summer months for sports betting, the number of bets often declines further in July, with a slight recovery expected in August as anticipation builds for the NFL season.
Looking Ahead
The sports betting market is poised for a robust resurgence come September, with the onset of the NFL season consistently driving high engagement and wagering. The NFL's popularity and its ability to draw significant betting activity will likely revitalize the market, reversing the current downward trend.
While June's figures show a dip, they also reflect the growing landscape of sports betting in New York, with year-on-year increases indicating a broader trend of increased participation. As major sports leagues resume and high-stakes events re-enter the calendar, the market is expected to bounce back and continue on its upward trajectory.