In June, player spending on online sports betting in New York experienced a significant decline, marking an alarming dip to its lowest total in ten months. The state's total monthly handle was recorded at $1.47 billion, representing a 25.4% decrease from May's $1.97 billion and illustrating a seasonal trend affecting the betting industry.
Despite the month-on-month decline, year-on-year comparisons paint a different picture. June's handle saw a 25.6% increase compared to June of the previous year. The gross gaming revenue for online sports betting in June stood at $133.9 million, which, although 34.1% below May’s earnings, marked a 29.0% improvement from the year before.
Several factors contributed to June's subdued performance. Notably, the conclusion of the NBA and NFL finals in early June had a role. Neither event featured a New York team, leading to diminished local interest. Historically, the summer months, with major sports leagues in their off-seasons, exhibit reduced betting activity. As such, sports betting traditionally sees quieter periods across New York and the United States during this time.
Breakdown by Operator
Among the operators, FanDuel emerged as the frontrunner, generating $67.1 million from $571.3 million in wagers. The company made a significant contribution of $34.2 million in taxes for June and has contributed nearly $998.3 million to state coffers since January 2022. DraftKings followed with $40.9 million in revenue from a $521.6 million handle.
Caesars recorded $6.8 million in revenue from $127.7 million wagered, while BetMGM reported matching revenue figures of $6.8 million from a $100.6 million handle. Fanatics 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 a total wager amount of $68.8 million.
Among the smaller players, BallyBet posted revenues of $658,294, and Resorts World reported revenues of $572,891. Wynn Interactive generated $66,665 from $1.5 million wagered, reflecting the diverse range of operators contributing to the market despite varied scales of operation.
Seasonal Dynamics
The June betting landscape is influenced by the MLB season, which runs through the summer but traditionally does not drive significant betting activity. The month does feature other major events, including horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. Notably, the Copa América is taking place in the US for only the second time this year. However, without continuous high-stakes events, bettors are less engaged during this period.
June is typically the strongest summer month for sports betting, yet the industry still experiences a decline in activity. This pattern aligns with year-over-year data showing reduced engagement during the summer months, with further declines in July and a slight recovery in August. The sports betting market sees a substantial resurgence in September with the onset of the NFL season, which consistently drives high engagement and wagering.
Future Projections
A drop in betting activity in June is to be expected given these seasonal trends. The market is poised for a robust resurgence with the upcoming NFL season, anticipated to invigorate both spending and revenue figures across New York’s online sports betting landscape.
In summary, while June's figures highlight a temporary dip in New York’s online sports betting activity, they also reflect a typical seasonal trend. As major sports leagues enter their active seasons and high-stakes events return, the market is likely to experience an upswing, reaffirming New York's position as a thriving hub for sports betting.