In an unexpected turn, player spending on online sports betting in New York has dipped to its lowest figure in ten months as of June. The revenue figures for New York’s online sports betting scene closely mirrored this trend, hitting their smallest monthly total since February. The total handle for June was recorded at $1.47 billion—a substantial decrease from May's $1.97 billion, amounting to a 25.4% drop.
This decline comes even as the June handle represents a 25.6% increase from June last year, indicating that while there's growth year-on-year, there's a notable month-to-month variability. Gross gaming revenue for June stood at $133.9 million, marking a 34.1% shortfall from May's robust earnings. However, it's essential to note that this figure is still 29.0% higher year-on-year, underscoring a complex landscape where overall trends show growth amidst seasonal fluctuations.
Seasonality and the Sports Calendar
The summer months have historically been quieter for sports betting, and this year is no different. The conclusion of both the NBA and NFL finals in early June likely contributed to the decreased betting activity, particularly as neither final featured a New York team. This absence of local teams competing for championships naturally dampens enthusiasm among local bettors.
Indeed, New York online sports betting hasn't seen such low spending levels since August 2023, when consumers wagered $1.11 billion. The fact that June's revenue barely edged out the $131.4 million posted in February reinforces the seasonal trends affecting the industry.
Operator Performance
FanDuel led the operators with $67.1 million in revenue from $571.3 million in total wagers for June, contributing $34.2 million in taxes. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers, highlighting its significant impact on New York's betting ecosystem.
DraftKings followed closely behind, generating $40.9 million from a $521.6 million handle. Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, while BetMGM reported $6.8 million in revenue from $100.6 million wagered. Fanatics clocked in with a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96% for June.
Other operators included Rush Street Interactive, generating $2.5 million from $68.8 million in total wagers, and BallyBet, which posted revenues of $658,294. Resorts World and Wynn Interactive also made modest contributions with revenues of $572,891 and $66,665 respectively.
Summer Events and Betting
Despite the MLB season running through the summer, it traditionally does not drive significant betting activity. June does include other notable events like horse racing's Belmont Stakes, golf’s US Open, and this year's Copa América football tournament, which is being held in the US for only the second time. Even with these events, June remains a quieter month in terms of high-stakes betting. It is typically the strongest of the summer months for sports betting, yet the overall activity still lags behind peak periods.
Industry experts point out that the number of bets often declines further in July, with a slight recovery in August. The sports betting market in New York is expected to see a robust resurgence with the onset of the NFL season in September, a period that consistently drives high engagement and wagering.
While the drop in betting activity in June is somewhat to be expected given the factors at play, the broader context suggests a resilient market. Bettors are now in a waiting game, ready to spring back into action when the major sports leagues come out of their off-seasons. For now, the sports betting landscape remains quiet, biding its time until the fall frenzy reignites New York's wagering excitement.