June Slump in Online Sports Betting Raises Eyebrows in New York
In a surprising turn, player spending on online sports betting in New York has nosedived to its lowest total in ten months, clocking in at $1.47 billion in June. This figure marks a 25.6% hike compared to the same month last year but also represents a 25.4% drop from May's robust $1.97 billion handle. The monthly revenue figures for June bottomed out at the smallest total since February, standing at $133.9 million. Although this revenue is 29.0% higher year-on-year, it falls short by 34.1% when juxtaposed with May's earnings.
The decline in wagering comes on the heels of the NBA and NFL finals, which concluded in the initial weeks of June. Notably, neither final featured a New York team, likely diminishing local interest and betting activity. This dip in engagement during the summer months is not unprecedented, with sports betting traditionally quieter across New York and the United States during this period.
FanDuel Surges Ahead
Despite the overall slump, FanDuel emerged as the leader among operators, raking in $67.1 million in revenue from $571.3 million in total wagers for June. The company’s impressive hold translated into a tax contribution of $34.2 million for the month, adding to the nearly $998.3 million FanDuel has paid into state coffers since January 2022. On the other hand, DraftKings generated $40.9 million from a $521.6 million handle, trailing FanDuel but still putting up notable numbers.
Caesars saw customers stake $127.7 million, yielding $6.8 million in revenue, while BetMGM reported similar figures with $6.8 million in revenue from $100.6 million wagered. Fanatics, another key player, reported a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96% for June. Lesser-known operators like Rush Street Interactive, BallyBet, and Resorts World posted revenues of $2.5 million, $658,294, and $572,891 respectively. Wynn Interactive generated a modest $66,665 off $1.5 million wagered.
Summer Slowdown
The MLB season, traditionally running through the summer, does not typically drive significant betting activity, contributing to the overall decline. June also features high-profile events like horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. However, the latter is being hosted in the US for only the second time this year, potentially impacting familiarity and betting enthusiasm. Given the fewer high-stakes events, a slowdown in June betting activity is anticipated.
Historically, June is the strongest month for sports betting during the summer, but the number of bets tends to decline further in July, with a slight recovery in August. The market experiences a significant resurgence in September with the kickoff of the NFL season, which consistently incites high engagement and wagering.
Forward-Looking Prospects
The sports betting industry's seasonal fluctuations underline the interplay between the sporting calendar and betting volumes. The conclusion of major sports leagues in June leaves a void that is felt keenly by operators and bettors alike. While the summer sports landscape does provide a variety of events, it lacks the consistent, high-stakes competition that drives betting activity to higher peaks.
The data also showcases the variability that sports betting operators must navigate. FanDuel's dominant position underscores the importance of market leadership in sustaining revenue streams, while smaller operators must strategize to compete effectively in a crowded marketplace.
As New York's sports betting market braces for the quieter months ahead, the anticipation of the NFL season brings hope of a robust resurgence. The unique dynamics of the sports calendar ensure that engagement ebbs and flows, reflecting the cyclical nature of both sports and the betting industry.