In the month of June, New York experienced a notable decline in online sports betting, registering the lowest total in ten months. Player spending on online sports betting fell, with the total monthly handle recorded at $1.47 billion. This amount marks a 25.4% drop compared to May's handle of $1.97 billion. However, despite the month-on-month decline, June's figure represents a 25.6% increase from the same month last year.
The gross gaming revenue for online sports betting in June stood at $133.9 million, showing a 29.0% increase year-on-year. However, this figure was 34.1% lower than May's total earnings. Revenue levels in June were only slightly higher than February's amount of $131.4 million. The summer months traditionally see quieter betting activities across New York and the United States, contributing to the downturn.
Operator Performance
In terms of individual performance, FanDuel led the pack with $67.1 million in revenue from $571.3 million in total wagers for June. The company's significant market presence was further highlighted by their tax contribution of $34.2 million for the month, bringing their total state tax contributions to nearly $998.3 million since January 2022.
DraftKings followed with $40.9 million generated from a handle of $521.6 million. Caesars saw wagers worth $127.7 million, resulting in $6.8 million in revenue. BetMGM reported $6.8 million in revenue from $100.6 million wagered, showcasing a robust sector performance despite the overall market slump.
Smaller Operators
Among smaller operators, Fanatics reported a handle of $67.3 million and revenue of $6.7 million, with a hold percentage of 9.96% in June. Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet posted revenues of $658,294, and Resorts World reported $572,891 in revenues. Wynn Interactive generated $66,665 off $1.5 million wagered, marking them as the most modest performer among the key operators.
Market Trends and Seasonal Effects
The conclusion of the NBA and NFL finals in early June is a major contributing factor to the decline, as neither event featured a New York team vying for the championship. The NBA and NFL typically drive significant betting activity, and their absence leaves a void that the current MLB season struggles to fill. Traditionally, the MLB does not engender the same level of betting enthusiasm, even though it runs through the summer months.
June is known to be one of the strongest summer months for sports betting, buoyed partially by events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which is being held in the US for only the second time this year. Despite these events, June's figures reflect the general seasonal trend of declining betting activity, with July expected to witness even fewer bets before a slight recovery in August.
Future Outlook
With major sports leagues in their off-seasons during June, the market is naturally quieter. The betting market is expected to rebound significantly with the onset of the NFL season in September, which consistently drives high engagement and wagering activity. The current trends suggest that while June and the coming summer months may be subdued, New York's sports betting market is poised for a robust resurgence with the return of the NFL.
As the data shows, the sports betting landscape is dynamic and influenced heavily by the sporting calendar. Operators like FanDuel and DraftKings continue to lead the market, ensuring healthy state tax contributions even in quieter months. With an anticipated uptick in activity come September, the New York sports betting scene remains a vital and evolving component of the larger gaming industry.