Player spending on online sports betting in New York has dropped to its lowest total in ten months as of June. This comes as revenue figures for online sports betting hit their smallest monthly total since February, aligning with a broader trend seen across the industry.
Decline in Monthly Handle
New York’s total monthly handle for June was recorded at $1.47 billion, a 25.4% drop compared to May's figure of $1.97 billion. However, this June handle represents a 25.6% increase from June last year. The decline in spending hasn't been this marked since August 2023, when consumers wagered $1.11 billion.
Gross gaming revenue for June stood at $133.9 million, which is 29.0% higher year-on-year. Despite this, June's gross gaming revenue fell 34.1% short of May's total earnings, showing the impact of seasonality and reduced betting activity once major sports seasons had concluded.
Impact of Seasonal Trends
The NBA and NFL finals, which concluded in the first few weeks of June, did not feature any New York teams vying for the championship. This lack of local involvement likely contributed to the decrease in betting activities. Additionally, the revenue for June was only marginally higher than the $131.4 million posted in February, which again underscores the influence of significant sports events on wagering.
Summer months are traditionally quieter for sports betting across New York and the United States as a whole. While June is typically the strongest of the summer months for sports betting, the betting volume often declines further in July, with a slight recovery seen in August. The market typically heats up again in September with the onset of the NFL season, which consistently drives high engagement and wagering.
Operator Performance
Among operators, FanDuel led the pack, posting $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel's contribution to state taxes for June was substantial, totaling $34.2 million. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers.
DraftKings followed closely, generating $40.9 million from a $521.6 million handle in June. Other notable performances included Caesars, which saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM also reported $6.8 million in revenue from $100.6 million wagered.
Fanatics reported a handle of $67.3 million and revenue of $6.7 million, with a hold percentage of 9.96% in June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet posted revenues of $658,294. Resorts World and Wynn Interactive reported revenues of $572,891 and $66,665, respectively.
Sports Events and Betting Patterns
While the MLB season runs through the summer, baseball traditionally does not drive significant betting activity compared to other sports. June does include notable events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. However, these events are not enough to compensate for the lull left by the conclusion of major sports leagues’ seasons.
The Copa América, taking place in the US for only the second time this year, added some level of excitement but still fell short of significantly boosting overall betting figures. Overall, the fewer high-stakes events in June led to an expected decrease in betting activity.
The sports betting market in New York is likely to see a robust resurgence with the NFL season, which is just around the corner. Betting activity is expected to ramp up significantly, as the NFL season consistently drives high levels of engagement and wagering throughout its duration.