Player spending on online sports betting in New York has witnessed a significant downturn, reaching its lowest point in ten months as of June. With the conclusion of prominent NBA and NFL finals, neither involving New York teams, it appears that the sports betting sector is feeling the summer slump.
Though the monthly handle for June reached $1.47 billion, this figure marks a stark 25.4% decline from May's $1.97 billion. However, it is noteworthy that this number represents a 25.6% increase when compared to June of last year, indicating a growth trend in year-on-year terms.
Revenue Takes a Dip
Gross gaming revenue for June was reported at $133.9 million, falling short by 34.1% compared to May's earnings. This month's revenue, though higher than February's $131.4 million, hasn't seen such low levels since August 2023, when consumers wagered $1.11 billion. Intriguingly, despite the downturn, the year-on-year revenue stands 29.0% higher, reflecting an overarching upward trajectory amidst seasonal fluctuations.
Seasonal Trends and Industry Leaders
It's a well-acknowledged trend that sports betting activity tends to slow down during the summer months, not only in New York but across the United States. The current metrics are consistent with this pattern. June traditionally marks the quietest period for sports betting, only to be surpassed in inactivity by July. A slight recovery usually follows in August, with the market getting a substantial boost come September with the NFL season.
FanDuel continues to dominate the New York online sports betting scene, posting a remarkable $67.1 million in revenue from $571.3 million in total wagers for June. The operator contributed $34.2 million in taxes for the month, adding to its substantial cumulative contribution of nearly $998.3 million to the state since January 2022.
DraftKings follows closely with $40.9 million in revenue from a $521.6 million handle, while Caesars reported customers staking $127.7 million, resulting in $6.8 million in revenue. BetMGM also showed solid performance with $6.8 million in revenue from $100.6 million wagered.
Smaller Players Make Their Mark
Other operators have also made notable contributions, despite smaller handles. Fanatics reported a handle of $67.3 million and revenue of $6.7 million, with a striking hold percentage of 9.96% for June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet and Resorts World reported revenues of $658,294 and $572,891, respectively. Wynn Interactive rounded out the list with $66,665 in revenue from $1.5 million wagered.
Sporting Events Influence
The subdued betting activity can be attributed to the end of major sporting seasons. With the NBA and NFL finals concluding in early June—events that did not see New York teams in contention—bettors' excitement seemingly waned. Additionally, while the MLB season continues through summer, its usual betting activity pales in comparison to other sports leagues. June does feature notable events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, yet these have not been able to significantly boost the month's betting figures.
Looking Forward
July is anticipated to witness a further decline in player spending on sports betting, following the historical trend. However, as August approaches, the market usually experiences a gradual recovery. The industry is poised for a robust resurgence with the onset of the NFL season in September, a period that traditionally drives high engagement and wagering due to the fervent popularity of football.
Despite the current downturn, the sports betting market in New York exhibits resilience with a consistent year-on-year growth. The cyclical nature of the industry, driven by the seasons and major sporting events, continues to shape its trajectory. The upcoming months will offer a clearer picture of how the market adapts and rebounds with the re-emergence of major sports leagues.