June Slump for New York Online Sports Betting: A Seasonal Trend or Market Shift?
The online sports betting landscape in New York experienced a notable downturn in June, marking its lowest point in player spending over the past ten months. New York's total monthly handle for June stood at $1.47 billion, reflecting a significant drop from May's $1.97 billion—a decline of 25.4%. Despite the month-over-month drop, this figure represents a 25.6% increase compared to June of the previous year.
Revenue Signals and Seasonal Trends
Gross gaming revenue for June also took a hit, reaching $133.9 million, which was 34.1% below May’s total. However, the year-on-year perspective offers a more optimistic view, with June's revenue showing a 29.0% increase over the same month last year. This drop compared to May is not entirely unexpected, as the early summer months historically witness a dip in sports betting activity.
It’s important to highlight that June saw the conclusion of the NBA and NFL finals, neither of which featured New York-based teams. This absence of local teams vying for championships likely contributed to the diminished betting interest. Additionally, major sports leagues are in their off-seasons this time of the year, and the MLB season, which runs through the summer, typically doesn’t drive significant betting activity.
Operator Performances: FanDuel at the Helm
Among the operators, FanDuel led the pack in June, generating $67.1 million in revenue from a total of $571.3 million in wagers. This performance not only underlines FanDuel’s market dominance but also its substantial contribution of $34.2 million in taxes for June. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers, a figure that underscores its pivotal role in New York’s sports betting ecosystem.
DraftKings followed, with a handle of $521.6 million producing $40.9 million in revenue. Caesars reported $6.8 million in revenue from $127.7 million staked, while BetMGM matched Caesars in revenue but with a higher handle of $100.6 million. Fanatics also posted promising numbers, with a handle of $67.3 million and revenue standing at $6.7 million, achieving a notable hold percentage of 9.96% for June.
Other operators, including Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive, contributed smaller but still significant revenues. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, and BallyBet posted revenues of $658,294. Resorts World reported $572,891 in revenues, while Wynn Interactive managed to generate $66,665 off $1.5 million wagered.
Seasonality and Future Expectations
The fluctuation in revenue and handle figures hinges not just on the outcomes of major sports events but also on the broader seasonal trends. June, bolstered by events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, is typically the strongest month of the summer for sports betting. However, with many high-stakes events absent and major leagues like the NBA and NFL in their off-seasons, a dip in activity was anticipated.
Looking ahead, the betting landscape traditionally experiences further declines in July, with some recovery expected in August as sports fans gear up for the NFL season. September is always a pivotal month, with the NFL’s return precipitating a surge in engagement and wagering.
This seasonal rhythm underscores a consistent pattern within the New York sports betting market. Despite the June slump, a robust resurgence is anticipated as the NFL season begins and major leagues resume their activities. This cyclical nature of betting activity highlights not just the sports calendar's influence on consumer behavior but also the inherent ebb and flow within this dynamic industry.