Analysis: Dive in New York Online Sports Betting in June
New York's online sports betting market experienced a notable downturn in June, with player spending hitting the lowest point in ten months. The total handle for June was recorded at $1.47 billion, which, while still substantial, marks a significant decrease from previous months. This figure represents a 25.4% drop compared to May's robust $1.97 billion handle. Despite this dip, June's handle was 25.6% higher compared to the same month last year, showcasing a year-on-year growth trend.
The decline in June's figures aligns with a broader seasonal pattern observed in the sports betting industry. Summer months typically see reduced betting activity as major sports leagues, such as the NBA and NFL, enter their off-seasons. This June, the conclusion of the NBA and NFL finals in the early weeks saw no New York teams contending for championships, which further dampened local betting enthusiasm. Additionally, the MLB season, which runs through the summer, traditionally does not drive substantial betting activity.
Gross gaming revenue for June stood at $133.9 million, falling short by 34.1% compared to May's earnings. Nevertheless, this figure displayed a 29.0% increase year-on-year, maintaining a positive trajectory despite the month-to-month fluctuations. The June revenue barely edged out February's earnings, which were $131.4 million.
Leading Operators' Performances
Among the operators, FanDuel led the pack, with $67.1 million in revenue generated from $571.3 million in total wagers. The company's significant contribution of $34.2 million in taxes underscores its dominant presence in the market. FanDuel's tax contributions since January 2022 have nearly reached an impressive $998.3 million.
DraftKings followed closely, generating a revenue of $40.9 million from a handle of $521.6 million. Caesars reported customers staked $127.7 million, resulting in revenues of $6.8 million, while BetMGM saw $100.6 million wagered, also translating to $6.8 million in revenue. It's noteworthy that Fanatics had a handle of $67.3 million and matched it with $6.7 million in revenue, achieving a hold percentage of 9.96%.
Other operators reported more modest figures. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet posted revenues of $658,294 and Resorts World recorded $572,891. Wynn Interactive, on the other hand, reported $66,665 from $1.5 million wagered.
Seasonal Patterns and Future Outlook
June, despite being a quieter month, does include notable events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. The latter being held in the US for only the second time might have provided some traction. However, the absence of high-stakes events and the off-season for major sports leagues naturally lead to reduced wagering activities.
The sports betting market is expected to further quiet down in July, with a slight recovery anticipated in August. Historically, September reignites betting enthusiasm with the onset of the NFL season, which consistently drives high engagement and wagering. The robust resurgence in September sets the stage for an invigorated market, rejuvenating the industry's dynamics.
Looking ahead, the fluctuations in the market underscore the importance of gauging seasonal trends and understanding how external factors, such as major sporting events and the performance of local teams, influence betting behaviors. The online sports betting landscape in New York is a testament to the evolving nature of consumer engagement and the critical role of strategic timing in capitalizing on market opportunities. As the NFL season approaches, all eyes will be on the rebound of the sports betting market, gearing up for what is anticipated to be a high-stakes, high-reward cycle.