New York Sees Steep Decline in June Online Sports Betting Activity
New York's online sports betting landscape experienced a significant downturn in June, with player spending hitting its lowest total in ten months. The state's sports betting handle for June capped at $1.47 billion, marking a notable drop from May’s $1.97 billion, and representing a stark 25.4% decrease month-on-month. Despite this monthly slump, June’s handle displayed a 25.6% rise compared to the same month last year, illustrating broader annual growth amidst seasonal fluctuations.
Interestingly, gross gaming revenue for June held steady at $133.9 million, a figure that, while robust, fell 34.1% short of May's total earnings. Still, the revenue managed to surpass last year's June figures by 29.0%, indicative of a complex yet expanding market. Factors influencing this dip include the conclusion of the NBA and NFL finals early in the month, none of which featured New York teams, potentially diminishing local engagement.
June vs. May: A Sharp Contrast
FanDuel emerged as the frontrunner among New York's betting operators, amassing $67.1 million in revenue from $571.3 million in total wagers during June. In contributions to state taxes, FanDuel paid $34.2 million, adding to nearly $998.3 million delivered to New York’s coffers since January 2022. Meanwhile, DraftKings achieved $40.9 million in revenue from a $521.6 million handle, further solidifying its place in the competitive market.
Other notable operators included Caesars, which saw wagers amounting to $127.7 million, resulting in a $6.8 million revenue. BetMGM reported matching revenue figures from $100.6 million staked. Fanatics reported a $67.3 million handle and $6.7 million in revenue, with an impressive hold percentage of 9.96%. Lesser players like Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive recorded varying levels of revenue, reflecting the diverse competitive landscape.
Summer Slump: A Seasonal Phenomenon?
Industry trends suggest that the summer months typically see a decline in sports betting activity, a pattern evident in New York’s June figures. The MLB season, which spans summer, does not traditionally drive significant betting activity. Although June features key events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, they have not compensated for the off-season lull of major sports leagues.
This year, June was particularly quiet, partly because the Copa América, being held in the US for only the second time, couldn't entirely fill the void left by more mainstream, high-stakes sports events. As expected, betting activity further declines in July with a slight recovery anticipated in August, according to seasonal patterns. New York's total wagers last reached such low levels in August 2023, when $1.11 billion was wagered.
Anticipating September Surge
Looking ahead, the sports betting market is expected to rejuvenate with the onset of the NFL season in September, known for consistently driving high engagement and wagering. The lull encountered in June is likely a precursor to a robust resurgence later in the year, aligning with historical trends.
The strategic leadership by top betting operators during leaner months will be crucial in positioning them for future gains. The market dynamics and consumer behavior observed in this period offer valuable insights, reminding the industry of the cyclical and seasonal nature of sports betting.
While June's figures might cast a shadow on New York's immediate sports betting climate, the overall year-on-year growth paints a hopeful picture. As high-profile sports events re-enter the calendar, the state's vibrant and competitive betting landscape is poised for an upswing, driven by the NFL season's invigorating start.