New York Online Sports Betting Sees Significant June Decline
Player spending on online sports betting in New York has plummeted to its lowest total in ten months as of June, marking a notable shift in the state’s betting landscape. The month recorded a total handle of $1.47 billion, which, while representing a 25.6% increase from June of the previous year, also signifies a noticeable 25.4% drop compared to May's $1.97 billion.
Illustrating an even starker contrast, the gross gaming revenue for June stood at $133.9 million, a figure that, despite being 29.0% higher year-on-year, fell 34.1% short of May's total earnings. This decline centers around several key factors, including the conclusion of the NBA and NFL finals early in the month, neither of which featured a New York team vying for the championship, dampening local interest and wagering.
The Seasonal Shift in Betting Activity
June traditionally marks the beginning of a quieter period for sports betting across New York and the broader United States. The end of major sports seasons like the NBA and NFL significantly reduces high-stakes betting, which typically rebounds in September with the commencement of the NFL season.
The MLB season, which runs through the summer, doesn’t drive significant betting activity compared to other sports seasons. Although June includes notable events like the Belmont Stakes, the US Open in golf, and Copa América, these do not capture bettor interest to the same extent as major leagues. Notably, the Copa América is being held in the US for only the second time this year, yet it has not significantly offset the seasonal drop in betting activity.
Leading Operators and Revenue Standings
Despite the drop in overall figures, some operators fared better than others. FanDuel led the market with $67.1 million in revenue from $571.3 million in total wagers for June, contributing $34.2 million in taxes. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers, solidifying its leading position.
DraftKings also posted substantial numbers, generating $40.9 million from a $521.6 million handle. Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, while BetMGM reported $6.8 million from $100.6 million wagered. Other notable performances include Fanatics with a handle of $67.3 million and $6.7 million in revenue, Rush Street Interactive with $2.5 million from $68.8 million in total wagers, and BallyBet and Resorts World with revenues of $658,294 and $572,891 respectively. Wynn Interactive generated a more modest $66,665 off $1.5 million wagered.
The Outlook for New York Sports Betting
The June figures reflect a broader trend seen during summer months where the sports betting market typically experiences a slump. This trend is expected to continue into July, with a slight recovery anticipated in August before the fall sports season ignites a robust resurgence. Historically, the onset of the NFL season in September breathes new life into the market, driving high engagement and wagering volumes.
New York’s sports betting market remains susceptible to such seasonal fluctuations, with the June decline being largely in line with historical patterns. The absence of significant local team involvement in concluding sports events likely exacerbated this dip, underscoring the importance of local interest in driving betting activity.
As sports return from their off-seasons and high-stakes events begin to fill the calendar, it is anticipated that the state's sports betting landscape will regain its robust momentum. The New York sports betting market and its operators, led by heavyweights like FanDuel and DraftKings, are poised to capitalize on this seasonal upswing, potentially setting new records in the latter part of the year.
Industry stakeholders will be watching closely to see how the betting landscape evolves, particularly in light of significant sporting events lined up for the upcoming months. The market's resilience and capacity to rebound will be key in determining the overall health and trajectory of sports betting in New York as we head into the fall.