Player spending on online sports betting in New York has taken a significant downturn, hitting its lowest total in ten months as of June. June's total handle was recorded at $1.47 billion, representing a 25.4% drop compared to May's $1.97 billion. Despite this sharp month-to-month decrease, the year-on-year numbers tell a different story, as June's handle rose 25.6% from the same period last year.
However, June's gross gaming revenue also saw a decrease, clocking in at $133.9 million, which was 34.1% short of May's earnings. These numbers indicate the lowest monthly revenue recorded since February, when the figure barely exceeded the $131.4 million mark. Nonetheless, the revenue for June was still a strong 29.0% higher year-on-year.
Impact of Conclusion of Major Sports Seasons
The conclusion of the NBA and NFL finals in the first few weeks of June likely contributed to this drop. Neither final featured a New York team vying for the championship, which likely decreased local betting interest. Additionally, summer has traditionally been a quieter season for sports betting, not just in New York but across the United States. The MLB season, running through the summer, seldom drives significant betting activity, indicating an expected slowdown during these months.
Interestingly, June often serves as the strongest of the quieter summer months for sports betting due to events like horse racing's Belmont Stakes, golf's US Open, and the Copa América football tournament. This year, Copa América is taking place in the US for only the second time, providing a slight boost in engagement. Nevertheless, the number of bets often continues to decline further in July before showing slight recovery in August.
Performance of Major Operators
FanDuel led the pack among operators, posting $67.1 million in revenue from $571.3 million in total wagers for June. The operator also made a substantial tax contribution of $34.2 million for the month and has paid nearly $998.3 million into state coffers since January 2022. DraftKings was not far behind, generating $40.9 million from a $521.6 million handle. Caesar's customers staked $127.7 million, resulting in $6.8 million in revenue, while BetMGM reported $6.8 million in revenue from $100.6 million wagered.
Fanatics also made a notable mark, reporting a handle of $67.3 million and achieving $6.7 million in revenue with a hold percentage of 9.96% for June. Smaller operators like Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet posted revenues of $658,294, while Resorts World earned $572,891. Wynn Interactive generated $66,665 from $1.5 million wagered, reflecting the diverse performance among different market players.
Seasonal Trends and Future Projections
Major sports leagues are in their off-seasons in June, leaving fewer high-stakes events to captivate bettors. This seasonal pattern is evident as betting activity often drops during this period. However, with the NFL season on the horizon, the sports betting market in New York is poised for a robust resurgence. The NFL season has consistently driven high engagement and wagering, suggesting a likely uptick in activity as the summer draws to a close.
As betting operators and players anticipate the new NFL season, the market is likely to heat up again in September. Despite the quieter summer months, the robust year-on-year increase in June's handle and revenue indicates a growing appetite for sports betting in New York. This trend suggests that while seasonal factors may temporarily slow down the market, the long-term outlook remains positive, bolstered by significant events and major sports seasons ahead.