In a surprising downturn, player spending on online sports betting in New York plunged to its lowest total in ten months as of June. This sharp decline has positioned June's revenue figures for online sports betting as the smallest monthly total since February, reflecting a broader trend within this period of the year.
The total handle for June was recorded at $1.47 billion, marking a 25.6% increase from June the previous year. Despite this year-on-year growth, the handle represented a significant 25.4% drop compared to May's $1.97 billion. Not since August 2023, when consumers wagered $1.11 billion, has New York’s online sports betting seen such low spending levels.
Revenue Fluctuations
Gross gaming revenue for June stood at $133.9 million, a figure that, while 29.0% higher year-on-year, represents a 34.1% decrease from May's total earnings. June's revenue barely edged out the $131.4 million posted in February, illustrating the challenges faced by sports betting operators during the summer months.
Several factors contributed to the dip in activity. The NBA and NFL finals, which concluded in the first few weeks of June, did not feature any New York teams vying for the championship. Furthermore, summer months historically see quieter times for sports betting across New York and the broader United States.
Operators' Performance
Leading the charge among operators, FanDuel posted $67.1 million in revenue from $571.3 million in total wagers for June. This significant performance translated into a $34.2 million contribution in taxes for the month. Since January 2022, FanDuel has paid nearly $998.3 million into state coffers.
Following close behind, DraftKings generated $40.9 million from a $521.6 million handle in June. Caesars saw customers stake $127.7 million, translating to $6.8 million in revenue, while BetMGM reported $6.8 million in revenue from $100.6 million wagered. Fanatics, with a handle of $67.3 million, reported $6.7 million in revenue, maintaining a hold percentage of 9.96% for the month.
Other operators also saw varying results: Rush Street Interactive generated $2.5 million from $68.8 million in total wagers. BallyBet and Resorts World posted revenues of $658,294 and $572,891, respectively. Wynn Interactive garnered $66,665 off $1.5 million wagered.
Seasonal Trends
The shift in betting activities during the summer months is partially due to the nature of sporting events this time of year. The MLB season, which runs through the summer, traditionally does not drive significant betting activity. Additionally, while June includes notable events like the Belmont Stakes, the US Open, and the Copa América football tournament—held in the US for only the second time—these events do not substantially offset the overall downturn in betting volume.
June typically stands out as the strongest of the summer months for sports betting. However, the number of bets often declines further in July, with a slight recovery in August. The market tends to heat up again in September with the onset of the NFL season, which consistently drives high engagement and wagering. Given that major sports leagues are in their off-seasons in June, it's no surprise that fewer high-stakes events captivate bettors during this period.
As the summer progresses, expectations align towards a robust resurgence in the sports betting market with the commencement of the NFL season, bringing renewed fervor and increased wagering across New York and beyond.