New York Online Sports Betting Experiences a Summer Slump in June
Player spending on online sports betting in New York has tumbled to its lowest total in ten months as of June, marking a significant downturn during what is traditionally a quieter period for the industry. The lull in activity is palpable, with revenue figures reaching their smallest monthly total since February.
New York’s total monthly handle for June was recorded at $1.47 billion, representing a 25.6% increase from June of the previous year. However, when compared to May's handle of $1.97 billion, June saw a 25.4% decline. It was only back in August 2023 that similarly low spending levels were seen, with consumers wagering a comparable $1.11 billion. This decline reflects a seasonal pattern, as summer months are usually quieter for sports betting across New York and the broader United States.
Gross gaming revenue for June stood at $133.9 million, which despite being 29.0% higher year-on-year, was still 34.1% short of May's total earnings. The June revenue barely exceeded the $131.4 million posted in February, underscoring the impact of the summer slump. Several factors contributed to this downturn, including the conclusion of the NBA and NFL finals in the early weeks of June, neither of which featured New York teams vying for the championship.
Summer Sports Betting Landscape
Historically, the MLB season, which runs through the summer, does not drive substantial betting activity. Despite including high-profile events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which is being hosted in the US for only the second time, June still represents the peak of the summer dip. The number of bets often declines further in July, with a slight recovery in August, before the market heats up again in September with the onset of the NFL season—known for consistently driving high engagement and wagering.
Operator Performance
Leading the pack of operators, FanDuel posted $67.1 million in revenue from $571.3 million in total wagers for June. The company made a significant contribution of $34.2 million in taxes for the month and has paid nearly $998.3 million into state coffers since January 2022. Meanwhile, DraftKings generated $40.9 million from a $521.6 million handle in June.
Other operators also saw varied results: Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, and BetMGM reported $6.8 million in revenue from $100.6 million wagered. Fanatics, another key player, reported a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96% for June.
Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. Smaller operators like BallyBet and Resorts World posted revenues of $658,294 and $572,891 respectively. Wynn Interactive generated $66,665 off $1.5 million wagered, highlighting the diverse performance landscape among operators in the state.
The Path Forward
While June's downturn is notable, it is not unexpected given the cyclical nature of sports betting. Major sports leagues are in their off-seasons, leaving fewer high-stakes events to captivate bettors. This seasonal ebb and flow explain the drop in activity and hint at a more robust resurgence anticipated with the NFL season. The NFL season, starting in September, is well-known for ramping up engagement and wagering, promising a revitalization of the sports betting market in New York.
In summary, while the June figures reflect a seasonal nadir for New York's online sports betting market, the broader trends suggest that this is a temporary trough. With major sporting events on hiatus and fewer high-stakes matches, it is a lull before the expected surge in activity with the return of the NFL, delivering a promising horizon for the industry.