New York Experiences Significant Drop in Online Sports Betting in June
In a significant turn of events, New York's online sports betting market recorded its lowest spending levels in ten months this June. The total handle for the month reached $1.47 billion, a 25.4% drop from May's $1.97 billion. Despite the decline from May, this figure still represented a 25.6% increase from June of last year.
The reduced activity in June can be attributed to a variety of factors. The conclusion of the NBA and NFL finals in early June played a major role. Neither championship featured a New York team, likely leading to decreased local interest and betting activity. Additionally, the summer months have traditionally been quieter for sports betting, not just in New York but across the United States.
Gross gaming revenue for June was reported at $133.9 million. While this is a 29.0% increase year-on-year, it represents a 34.1% decrease from May's total earnings. The closest comparison for June's revenue figure is February, when $131.4 million was posted. This contrasts sharply with the months of peak sports activity when multiple leagues are in full swing.
FanDuel, DraftKings, and Other Major Players
Among the leading operators, FanDuel topped the charts, reporting $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel’s contributions to state taxes for the month stood at $34.2 million, adding to the nearly $998.3 million that the company has paid since January 2022. DraftKings followed with $40.9 million in revenue from a $521.6 million handle.
Other notable figures include Caesars, which saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM reported $6.8 million from $100.6 million wagered, while Fanatics posted a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96%. Rush Street Interactive generated $2.5 million from $68.8 million in wagers, while BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive reported $66,665 in revenue from $1.5 million wagered.
The Summer Slump
The Major League Baseball (MLB) season, which runs throughout the summer, traditionally does not drive as much betting activity as other sports. June also included significant events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which is being held in the US for only the second time. Despite these events, June is typically the strongest summer month for sports betting, but even then it falls short compared to the busier times of the year. Betting activity often sees a further decline in July with a slight recovery in August, primarily attributed to the approaching NFL season.
Anticipated Resurgence
With major sports leagues in their off-seasons in June, there are fewer high-stakes events to captivate bettors. As such, a drop in betting activity during this period is not unexpected. The sports betting market in New York is likely to see a robust resurgence with the onset of the NFL season in September, which consistently drives high engagement and wagering.
Overall, while June's figures may seem concerning at first glance, they fall in line with the expected seasonal trends. The New York online sports betting market, bolstered by major events and the resumption of the NFL season, is poised to bounce back strongly in the coming months.