New York's online sports betting sector hit a ten-month low in June, recording a total handle of $1.47 billion. This figure marks a significant downturn from May's $1.97 billion, a 25.4% decrease, but represents a 25.6% increase compared to June last year. The reduced engagement can be attributed to several seasonal factors and the conclusion of major sports events.
Seasonal Slowdown
The summer months historically see less betting activity across New York and the United States. Major sports leagues, including the NBA and NFL, are in their off-seasons, with the finals for these leagues having wrapped up in early June. Notably, this year's finals did not feature any New York teams, diminishing local interest and enthusiasm.
Baseball, albeit in full swing, traditionally does not drive substantial betting activity compared to other sports. Despite the ongoing MLB season, which spans the summer months, the sport has not generated the same high stakes and interest as others. June's sports calendar includes events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América, held in the US for just the second time. However, these events have not significantly boosted betting figures.
Revenue and Operator Performance
June's gross gaming revenue stood at $133.9 million. While this figure represented a 29.0% increase year-over-year, it fell 34.1% short of May's total earnings. This decline reflects the overall drop in wagering activity.
FanDuel led the industry's revenue charts, posting $67.1 million from $571.3 million in total wagers. The operator contributed $34.2 million in taxes for June, and since January 2022, has paid nearly $998.3 million into state coffers. DraftKings followed, generating $40.9 million from a $521.6 million handle.
Other operators also noted modest revenue figures. Caesars saw $6.8 million from $127.7 million in wagers, while BetMGM reported $6.8 million in revenue off $100.6 million wagered. Fanatics registered 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.
The Quiet Summer Months
The summer traditionally represents a lull period, with June being the most active month of this quiet season. The number of bets generally continues its decline in July, with a slight recovery occurring in August. By September, the sports betting market sees a significant resurgence, driven by the onset of the NFL season—a period marked by high engagement and wagering.
Despite this seasonal predictability, June's engagement levels were notable. New York online sports betting hadn't seen such low spending levels since August 2023, when consumers wagered $1.11 billion. June's revenue, while struggling to surpass February's $131.4 million, still showcased the market's resilience year-over-year.
Expectations for the Future
Looking forward, the sports betting market in New York is poised for a robust comeback with the NFL season. The return of high-stakes events is expected to reignite bettor enthusiasm and drive substantial revenue growth. For the time being, operators and stakeholders must navigate the quieter summer months, adjusting strategies to maintain user engagement in the absence of major sporting events.
With a proven track record and consistent consumer interest, the New York sports betting landscape is set to rebound strongly, reinforcing its position as a significant player in the broader sports betting industry.