New York Online Sports Betting Faces Summer Slump
New York’s online sports betting market has hit a noticeable slump, an expected seasonal dip that still raises eyebrows with its stark figures. As of June, spending on online sports betting plummeted to its lowest levels in ten months, recording a total handle of $1.47 billion. This figure marks a significant 25.4% drop from May's total of $1.97 billion, but interestingly, it still represents a 25.6% increase over June of the previous year.
A Quiet Period
The decline in betting activity in June correlates with a less engaging sports calendar for bettors. Both the NBA and NFL finals wrapped up in early June without the involvement of New York teams, diminishing local interest. Major sports leagues, besides Major League Baseball, are in their off-seasons, and while June includes events like the Belmont Stakes, the US Open in golf, and the Copa América football tournament, these do not generate the same level of betting activity as other times of the year.
The MLB season runs through the summer but traditionally does not drive significant betting activity, contributing to the overall lull. The slight excitement generated by events such as the Belmont Stakes and the Copa América, which is being held in the US for only the second time, hasn't notably countered the broader seasonal decline.
Revenue Figures Tell the Tale
June's gross gaming revenue of $133.9 million illuminates the trend further. While it is 29.0% higher year-on-year, it falls significantly short—by 34.1%—of the revenue figures posted in May. The June revenue barely eclipsed February's $131.4 million, underscoring the seasonality of the market.
Summer months are traditionally quieter for sports betting across New York and the US. The number of bets typically declines further in July before seeing a slight recovery in August. However, the anticipation is that the sports betting market will regain its momentum when the NFL season kicks off in September, a period known for high engagement and significant wagering activity.
Operator Performance
Among the operators, FanDuel led the pack with substantial numbers. The company posted $67.1 million in revenue from $571.3 million in total wagers for June, contributing a hefty $34.2 million in taxes. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers, signifying its dominant presence in the market.
DraftKings followed with $40.9 million in revenue from a $521.6 million handle. Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, while BetMGM also reported $6.8 million in revenue from $100.6 million wagered.
Fanatics reported a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96% in June. Rush Street Interactive generated $2.5 million from $68.8 million in wagers. BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively, and Wynn Interactive generated $66,665 from $1.5 million wagered.
Looking Forward
While June has been a challenging month for New York’s online sports betting market, industry analysts and operators remain optimistic about a robust resurgence. As historical patterns suggest, the market is expected to revitalize with the onset of the NFL season in September, which consistently drives high engagement and wagering.
Despite the current downturn, the overall growth trend from last year indicates a healthy expansion of the market. As operators continue to innovate and attract bettors with various promotions and offerings, the fluctuations seen during the quieter summer months are viewed as a temporary phase in the broader scope of New York’s thriving sports betting landscape.
A Temporary Dip
The seasonal nature of sports betting is apparent, and while the current figures may seem alarming, they reflect a predictable pattern. The market's resilience and the imminent return of highly engaging sports events promise a dynamic second half of the year for New York’s online sports betting industry. As the summer heat gives way to fall, the stakes—and the bets—are bound to rise once more.