June Betting Numbers: A Seasonal Downturn
With June marking the end of the NBA and NFL finals, New York’s online sports betting market has experienced a significant decline, hitting its lowest spending total in ten months. Player spending plummeted, bringing the total monthly handle to $1.47 billion—a stark contrast to May’s $1.97 billion. This 25.4% drop from the previous month underscores the seasonal volatility that characterizes the sports betting industry.
Despite the monthly drop, June's handle still represents a robust 25.6% increase compared to the same month last year, highlighting sustained growth in the betting market over the longer term. Gross gaming revenue stood at $133.9 million, reflecting a 29.0% year-on-year rise but a notable 34.1% decrease from May’s figures.
FanDuel emerged as the leading operator in June, generating $67.1 million in revenue from $571.3 million in total wagers. This dominant performance wasn’t just reflected in revenue but also in tax contributions, with FanDuel paying $34.2 million into state coffers for the month. Since January 2022, FanDuel's tax contributions have nearly reached an impressive $998.3 million.
Seasonal Factors and Market Dynamics
June's downturn in betting activity isn't unexpected. With the NBA and NFL finals concluding early in the month and not featuring any New York teams, the market naturally cooled off. Furthermore, major sports leagues were in their off-seasons, leading to fewer high-stakes events that typically drive significant betting activity. The MLB season, although running through the summer, traditionally doesn't attract the same level of wagering.
While the June handle and revenue figures dipped, it is essential to recognize that summer months are generally quieter for sports betting across both New York and the broader United States. June, traditionally the strongest summer month for betting, includes notable events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which took place in the US for only the second time this year. Yet, even these events couldn't entirely counterbalance the decrease in betting volumes.
Leading Operators and Market Shares
Following FanDuel, DraftKings reported $40.9 million in revenue from a $521.6 million handle. Caesars saw customers stake $127.7 million, yielding $6.8 million in revenue. BetMGM’s figures were close, reporting $6.8 million from $100.6 million wagered. Notably, Fanatics reported a handle of $67.3 million with an impressive hold percentage of 9.96%, leading to $6.7 million in revenue. 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, although trailing behind, generated $66,665 from $1.5 million wagered.
Looking Forward
The summer slowdown in betting is expected to continue in July, with a slight recovery anticipated in August. However, the sports betting market will decidedly heat up again in September, spurred by the onset of the NFL season. Historically, the NFL season consistently drives high engagement and wagering, and New York’s market is likely to see a robust resurgence during this period.
In conclusion, the drop in June's betting activity doesn't signal any long-term downturn for New York’s online sports betting market. Instead, it reflects the expected seasonal fluctuations inherent to the industry. With strong year-on-year growth and major events on the horizon, the market remains poised for continued evolution and expansion.