New York Sports Betting Experiences Summer Slump
In a striking turn of events, player spending on online sports betting in New York has plunged to its lowest level in ten months as of June. This downturn marks the smallest monthly total in revenue figures for online sports betting in the state since February. The trend signals the beginning of the traditionally quieter summer period in the sports betting calendar.
New York's total monthly handle for June stood at an impressive $1.47 billion. While this figure represents a significant 25.6% increase from June last year, it also represents a notable 25.4% decline compared to May's robust $1.97 billion handle. This dip in activity reflects the seasonal fluctuations seen in sports betting, aligning with the conclusion of major sports seasons and the onset of summer.
The gross gaming revenue for June exhibited a similar pattern. Standing at $133.9 million, June's revenue figure marks a 29.0% increase year-on-year, yet it falls short by 34.1% when compared to May's total earnings. Notably, June's gross gaming revenue was only marginally higher than the $131.4 million posted in February, hinting at the start of a slow period for the industry.
Several factors contributed to this decline, including the conclusion of the NBA and NFL finals in the early weeks of June. Notably, neither the NBA nor NFL finals featured a New York team competing for the championship, resulting in decreased local interest. Furthermore, major sports leagues enter their off-seasons in June, leaving fewer high-stakes events to captivate bettors.
Unsurprisingly, the summer months traditionally witness a dip in sports betting activity across both New York and the United States. With the MLB season running throughout the summer, its games do not typically drive substantial betting activity. While June includes notable events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, their impact on betting doesn't compare to the major sports leagues' regular seasons.
Even amidst this lull, certain operators continued to show their dominance. FanDuel led the pack, posting $67.1 million in revenue from $571.3 million in total wagers for June. The operator made a substantial contribution of $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since January 2022.
Other operators reported varying figures. DraftKings generated $40.9 million from a $521.6 million handle in June, while Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM reported $6.8 million in revenue from $100.6 million wagered. Fanatics stood out 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. BallyBet and Resorts World reported modest revenues of $658,294 and $572,891, respectively. Wynn Interactive, despite generating $66,665 off $1.5 million wagered, maintained its presence in the market.
June has historically been the strongest month for sports betting during the summer, with a noticeable decline in activity during July. However, the market typically experiences a minor recovery in August before heating up again in September with the onset of the NFL season. This period consistently drives high engagement and wagering, setting the stage for a robust resurgence in New York's sports betting market.
The cyclical nature of sports betting ensures that while June's figures may seem subdued, operators and enthusiasts alike can anticipate a dynamic shift as the summer gives way to fall. In the meantime, bettors can still find excitement in the myriad of events taking place, from baseball to golf, as they await the return of high-stakes action.