In a surprising turn of events, player spending on online sports betting in New York has plummeted to its lowest total in ten months as of June. Revenue figures also mirrored this downward trend, hitting the smallest monthly total since February. New York’s total monthly handle for June was recorded at $1.47 billion, a significant 25.6% increase from the same month last year. However, this represents a staggering 25.4% drop compared to May's $1.97 billion.
June's performance is particularly notable as New York online sports betting hasn't seen such low spending levels since August 2023, when consumers wagered $1.11 billion. Gross gaming revenue for the month stood at $133.9 million, which, despite being 29.0% higher year-on-year, fell 34.1% short of May's total earnings.
Impact of Major Sports Events
Several factors contributed to the downturn in June. Both the NBA and NFL finals concluded in the first few weeks of the month, but neither featured a New York team vying for the championship. This lack of local team involvement likely dampened the enthusiasm and betting fervor among New York's sports fans.
Interestingly, the revenue for June was barely higher than the $131.4 million posted back in February, underlining the seasonal nature of sports betting. Summer months are traditionally quieter for sports betting across New York and the United States. With the NBA and NHL finals being among the few events driving bets in June, the lack of significant sports action arguably contributed to the decline.
Individual Operator Performance
Looking at the individual operators, FanDuel led the pack, posting $67.1 million in revenue from $571.3 million in total wagers for June. The company also made a substantial contribution of $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since the inception of mobile sports betting in January 2022. DraftKings followed in second place, generating $40.9 million from a $521.6 million handle.
Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM also reported $6.8 million in revenue but from a slightly lower wager total of $100.6 million. Fanatics reported a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96%. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive lagged behind, generating $66,665 off $1.5 million wagered.
Seasonal Betting Trends
The MLB season, which runs through the summer, traditionally does not drive significant betting activity. Consequently, the few summer highlights include horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. This year, the Copa América is taking place in the US for only the second time, potentially ramping up some interest. Looking ahead, events such as the Euro 2024 football tournament and cycling’s Tour de France may attract some attention from US consumers, but these are largely niche markets.
June is typically the strongest of the summer months for sports betting. The numbers often decline further in July before experiencing a slight recovery in August. The sports betting market heats up again in September with the onset of the NFL season, which consistently drives high engagement and wagering.
Overall, while June's figures might seem disheartening at first glance, they likely reflect the natural ebb and flow of the sports calendar. With major sports leagues in their off-seasons and fewer high-stakes events captivating bettors, a drop in activity is to be expected. However, as the NFL season looms on the horizon, the sports betting market in New York is likely to see a robust resurgence.