Slumping Summer: New York's Online Sports Betting Takes a Hit
The sweltering summer heat isn't the only thing cooling down in New York. Player spending on online sports betting in the Empire State dipped to its lowest point in ten months as of June, signaling a significant retreat in wagering activity. June's revenue figures for online sports betting hit their smallest monthly total since February, underscoring a downward trend that industry insiders anticipated.
The total monthly handle for New York in June was recorded at $1.47 billion. While this represents a notable 25.6% increase from the same period last year, it marks a 25.4% decrease from the previous month. In May, New Yorkers wagered $1.97 billion on online sports betting. The last time spending levels were this low was in August 2023, when $1.11 billion was wagered. Gross gaming revenue stood at $133.9 million for June, a figure that is 29.0% higher year-on-year but fell 34.1% short of May's total earnings.
Seasonal Trends and Major Events
The conclusion of the NBA and NFL finals in the early weeks of June likely contributed to the slump. Notably, neither championship featured a New York team competing for the title. Summer months traditionally exhibit quieter periods for sports betting across New York and the broader United States. This seasonal lull is especially pronounced in June, even though it is typically the strongest month for sports betting during the summer.
June's gross gaming revenue of $133.9 million was barely higher than the $131.4 million posted in February, highlighting the seasonal dip. The MLB season, running through the summer, generally does not drive significant betting activity, adding another layer to the reduced engagement. Furthermore, June includes events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which don’t typically capture high-stakes betting interest. The Copa América is taking place in the US for only the second time this year, yet it has not significantly boosted wagering activity.
Operator Performance
In terms of individual operators, FanDuel led the charge by posting $67.1 million in revenue from $571.3 million in total wagers for June. The company made a substantial contribution of $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since January 2022. DraftKings followed with $40.9 million generated from a $521.6 million handle. Meanwhile, Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, closely followed by BetMGM reporting $6.8 million in revenue from $100.6 million wagered.
Other players in the market included Fanatics, which reported a handle of $67.3 million and revenue of $6.7 million, with a hold percentage of 9.96%. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive had a relatively small footprint, generating $66,665 off $1.5 million wagered.
Future Prospects
Given the historical trends, the drop in betting activity for June was not unexpected. Major sports leagues are in their off-seasons, and high-stakes events that typically captivate bettors are few and far between during this period. As such, the decline in wagering during the summer months is a familiar narrative in the sports betting world. Interestingly, July often sees a further dip in betting activity, with a slight recovery usually observed in August.
However, the sports betting market is poised for a resurgence come September with the onset of the NFL season. The NFL consistently drives high engagement and wagering, and industry experts anticipate a robust recovery in the sports betting landscape. As the sports calendar heats up, so too will the enthusiasm and participation of New York bettors, marking an end to this seasonal lull.