As of June, player spending on online sports betting in New York has substantially decreased, hitting its lowest total in ten months. This decline in activity has seen revenue figures for online sports betting drop to their smallest monthly total since February. The total monthly handle for June was recorded at $1.47 billion, indicating a substantial decrease from May's $1.97 billion, representing a 25.4% drop.
Despite this, the handle for June marks a 25.6% increase compared to the same month last year, showcasing the overall growth and potential of the market. However, the gross gaming revenue for June stood at $133.9 million, which, although 29.0% higher year-on-year, falls 34.1% short of May's total earnings.
The Seasonality Effect
Several key factors have contributed to this downturn. The conclusion of the NBA and NFL finals in the first few weeks of June, without a New York team vying for the championship, played a significant role. Traditionally, summer months see quieter sports betting activity across New York and the United States, with June barely posting higher revenue than February’s $131.4 million.
The month of June is typically the strongest among the summer months for sports betting. However, major sports leagues such as the NBA and NFL are in their off-seasons, leading to fewer high-stakes events to captivate bettors. The MLB season, which runs through the summer, traditionally does not drive significant betting activity. June’s schedule does include events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. The latter, taking place in the US for only the second time, sparked some interest but not enough to overcome the seasonal lull.
Operator Performance
Among the operators, FanDuel led the pack, posting an impressive $67.1 million in revenue from $571.3 million in total wagers for June. The company contributed $34.2 million in taxes for the month, with a significant total of nearly $998.3 million paid into state coffers since January 2022.
DraftKings followed, generating $40.9 million from a $521.6 million handle in June. Meanwhile, Caesars saw customers stake $127.7 million, which resulted in $6.8 million in revenue. BetMGM reported similar earnings, with $6.8 million in revenue from $100.6 million wagered.
Fanatics also showed a strong performance with a handle of $67.3 million and revenue of $6.7 million, maintaining a hold percentage of 9.96% in June. Other operators like Rush Street Interactive generated $2.5 million from $68.8 million in total wagers, while BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive managed to generate $66,665 off $1.5 million wagered.
Anticipations and Trends
The decline in the number of bets is expected to continue into July, with a slight recovery anticipated in August. Historically, the sports betting market regains momentum in September with the onset of the NFL season, known for driving high engagement and wagering activity.
This cyclical nature of sports betting, tied closely to the calendar of major sports leagues, means a drop in betting activity in June is not alarming but rather predictable. The market is poised for a robust resurgence with the return of NFL games in the fall, promising a return to higher engagement and revenue figures.
Ultimately, the summer slump in sports betting is a well-documented trend. With fewer marquee events and many major leagues in their off-seasons, the reduced betting activity in June was anticipated. Looking forward, the New York sports betting market remains vibrant and ready to bounce back as soon as the high-stakes events return to captivate the audience's attention.