New York's Online Sports Betting Sees Decline Amid Summer Doldrums

New York's Online Sports Betting Sees Decline Amid Summer Doldrums

The summer of 2024 has brought a noticeable dip in player spending on online sports betting in New York, hitting the lowest levels observed in the past ten months as of June. The total handle for June was registered at $1.47 billion, a significant decrease from May's $1.97 billion, marking a 25.4% drop. Interestingly, this handle still represents a 25.6% year-on-year increase from June of the previous year.

Revenue dynamics reflected similar trends, with the gross gaming revenue for June standing at $133.9 million, showing a 34.1% reduction compared to May's earnings. Nevertheless, this figure is 29.0% higher than the revenue recorded in June of the previous year.

June's revenue was only slightly above the $131.4 million generated in February, indicating a consistent trough period during the summer months. Historically, summer is a slower period for sports betting across New York and the United States, largely due to the offseason for major sports leagues.

The Effect of Major Leagues' Off-Seasons

Contributing to the lower betting volumes, the NBA and NFL finals both concluded in the early weeks of June, without participation from New York-based teams in the championship bouts. The absence of local teams in high-stakes games likely dampened enthusiasm among bettors, correlating with the reduction in wagering activity.

Furthermore, June typically hosts fewer marquee sports events. While it includes the MLB season, the Belmont Stakes, golf’s US Open, and the Copa América football tournament, none of these events traditionally drive significant betting activity. The MLB season, in particular, continues through the summer but does not incite substantial betting trends. The Copa América, despite being hosted in the US for only the second time, failed to ignite the same level of betting fervor.

Leaders in the Betting Arena

Among the leading operators, FanDuel stood out, posting $67.1 million in revenue from $571.3 million in total wagers. The company also made a substantial contribution of $34.2 million in taxes for June, amounting to nearly $998.3 million paid into the state’s coffers since January 2022. DraftKings followed, with $40.9 million generated from a $521.6 million handle in June.

Other notable performers included Caesars, which saw customers stake $127.7 million, resulting in $6.8 million in revenue. BetMGM reported similar revenue figures, with $6.8 million from $100.6 million wagered. Meanwhile, Fanatics reported a handle of $67.3 million and revenue of $6.7 million, achieving a hold percentage of 9.96%. Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive posted more modest figures, with revenues of $2.5 million, $658,294, $572,891, and $66,665 respectively.

Seasonal Trends and Future Outlook

June is typically the strongest month for sports betting during the summer, before a further decline in July followed by a slight recovery in August. This cyclic pattern underscores a broader trend in the sports betting industry, closely tied to the calendar of major sports events. The market tends to heat up again in September with the onset of the NFL season, which consistently drives high engagement and wagering.

Despite the seasonal ebb and flow, the recent figures highlight a resilient growth trajectory for New York's online sports betting market. The 25.6% increase in total handle from June last year, coupled with a 29.0% rise in year-on-year revenue, suggests that while June 2024 saw a downturn, the broader market continues on an upward path.

In conclusion, the drop in New York's sports betting activity in June is a predictable trend exacerbated by the summer lull and the off-seasons for major leagues. However, the anticipated resurgence with the NFL season is likely to reinvigorate the market, setting the stage for a robust recovery in the coming months.