June Sees Significant Dip in New York Online Sports Betting
June saw a notable drop in player spending on online sports betting in New York, recording the lowest total in nearly a year. The total monthly handle for June was $1.47 billion, a stark decrease from May's $1.97 billion handle. This 25.4% month-on-month decline brought revenues to levels not seen since February, underscoring the seasonal ebb in betting activity.
Despite the drop from May, June's handle still represented a 25.6% increase compared to the same month last year. Notably, gross gaming revenue for June stood at $133.9 million, a 29.0% year-on-year rise but a 34.1% decline from May's figures.
The end of significant sports events in June, such as the NBA and NFL finals—neither of which featured New York teams—likely contributed to the decreased betting activity. Historically, summer months are quieter for sports betting, and June was no exception, showing just a slight improvement over February's $131.4 million revenue.
Top Performers in June
Leading the charge among operators, FanDuel posted $67.1 million in revenue with a handle of $571.3 million for June. The operator also contributed $34.2 million in taxes for the month, continuing its substantial contributions to state revenue, with nearly $998.3 million paid into state coffers since January 2022. Following FanDuel, DraftKings generated $40.9 million from a handle of $521.6 million.
Other operators also saw varied performances. Caesars customers wagered $127.7 million, translating to $6.8 million in revenue. BetMGM reported an identical revenue of $6.8 million from $100.6 million wagered. Fanatics noted a handle of $67.3 million, earning $6.7 million in revenue with a hold percentage of 9.96%. Rush Street Interactive garnered $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 recorded $66,665 from $1.5 million wagered.
Seasonal Trends and Expectations
The summer season traditionally doesn't stimulate heavy betting activity, with the MLB season running through the warmer months without generally driving significant engagement. While high-stakes events such as the Belmont Stakes, golf’s US Open, and the Copa América took place in June, the overall landscape was marked by reduced wagering interest.
Despite June typically being the strongest of the summer months for betting, activity often further declines in July, with a slight recovery anticipated in August. However, a robust resurgence is expected with the onset of the NFL season in September, a time of high engagement and increased wagering activity.
The moderate June figures align with historical patterns, where major sports leagues are in their off-seasons, leading to fewer high-stakes events that captivate bettors. New York's sports betting market, therefore, saw a predictable drop in performance, but remains on the radar for a significant rebound aligning with the NFL season's kick-off.
While the summer numbers may seem underwhelming, they fall in line with the cyclical nature of the sports betting industry. Stakeholders and enthusiasts alike can look forward to a vigorous turn as the football season approaches, promising renewed interest and possibly record-setting engagements as the market gears up for its busiest period of the year.