Player spending on online sports betting in New York has plummeted to its lowest total in ten months as of June. Revenue figures for online sports betting in New York also hit the smallest monthly total since February, signaling a significant downturn in the state's gaming industry during what is traditionally a quieter period for sports wagering.
A Downward Trend
New York’s total monthly handle for June was recorded at $1.47 billion, which, while representing a 25.6% increase from June last year, demonstrates a noticeable drop of 25.4% compared to May’s $1.97 billion. This marks the lowest spending level the state has seen since August 2023, when consumers wagered $1.11 billion. Gross gaming revenue for June stood at $133.9 million, which, although 29.0% higher year-on-year, fell 34.1% short of May's total earnings.
Seasonal Impact and Market Dynamics
The seasonal nature of sports and betting cycles is telling. The conclusion of the NBA and NFL finals in the first few weeks of June, without the participation of any New York teams, likely contributed to the downturn. Summer months traditionally see less betting activity across New York and the United States. With major sports leagues in their off-seasons and fewer high-stakes events captivating bettors, a drop in June's betting activity is expected.
Leading Operators and Revenues
Among the operators, FanDuel led the pack, posting $67.1 million in revenue from $571.3 million total wagers for June. The company made a significant tax contribution of $34.2 million for the month and has paid nearly $998.3 million into state coffers since January 2022. DraftKings followed with $40.9 million in revenue from a $521.6 million handle.
Other notable operators included Caesars, reporting $6.8 million in revenue from $127.7 million staked, and BetMGM, which also posted $6.8 million in revenue, but from $100.6 million wagered. Fanatics reported a handle of $67.3 million and revenue of $6.7 million, maintaining a hold percentage of 9.96% in June. On a smaller scale, 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 reported $66,665 off $1.5 million wagered.
Impact of Other Sporting Events
While the MLB season runs through the summer, it traditionally does not drive significant betting activity. June's other sporting events, like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, didn't create enough momentum to offset the seasonal lull. Notably, the Copa América is taking place in the US for only the second time this year, but its impact on the betting market was muted.
Future Expectations
June is typically the strongest of the summer months for sports betting despite the overall quieter period, and a further decline in betting activity is expected in July, with a slight recovery in August. However, the sports betting market is likely to see a robust resurgence with the onset of the NFL season in September, which consistently drives high engagement and wagering.
These trends highlight the seasonal fluctuations in the sports betting market and underscore the importance of major sporting events in driving consumer engagement. As the NFL season kicks off, the market is expected to bounce back, reflecting the cyclical nature of the industry.