Player spending on online sports betting in New York has plunged to its lowest total in ten months, as June marked a significant downturn in both wagers and revenue. The total monthly handle recorded was $1.47 billion, a sharp drop from May's $1.97 billion, representing a 25.4% decline.
Despite this considerable month-over-month decrease, June's handle still showed a commendable 25.6% increase compared to the same period last year. This year-over-year uptick, however, wasn't enough to offset the seasonal slump commonly observed during the summer months, when major sports leagues enter their off-seasons and fewer high-stakes events captivate bettors.
Revenue Figures and Operator Performances
Gross gaming revenue for June was reported at $133.9 million, which, despite being 29.0% higher than last year's figures, fell short by 34.1% compared to May’s total earnings. This month's revenue was barely above the $131.4 million posted in February, underscoring the significant impact of the seasonal downturn.
Among the operators, FanDuel led the pack, posting $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel's operations contributed $34.2 million in taxes, bringing their total contributions to nearly $998.3 million since January 2022. DraftKings followed, generating $40.9 million from a $521.6 million handle.
Caesars and BetMGM also saw substantial activity, with Caesars' customers staking $127.7 million, resulting in $6.8 million in revenue, and BetMGM reporting $6.8 million in revenue from $100.6 million wagered. Other notable performances included Fanatics, which reported a handle of $67.3 million and revenue of $6.7 million, maintaining a hold percentage of 9.96% for June.
Rush Street Interactive, BallyBet, Resorts World, and Wynn Interactive saw comparatively lower revenues, with figures of $2.5 million, $658,294, $572,891, and $66,665 respectively. These numbers highlight the varying scales of operation and market impact among different platforms.
Impact of Sports Seasons and Events
June's downturn can be attributed to the conclusion of the NBA and NFL finals in the first few weeks of the month. Notably, neither of these finals featured a New York team vying for the championship, which likely diminished local betting interest. The summer months historically see less activity in sports betting, with the MLB season, despite running through the summer, traditionally not driving significant betting activity.
June does include some notable events such as horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament. However, these events don't typically generate the same level of engagement or wagering as the major professional leagues.
Seasonal Trends and Future Outlook
June is ordinarily the strongest of the summer months for sports betting, but the market often sees a further decline in July before a slight recovery in August. The sports betting scene is expected to heat up again in September with the onset of the NFL season, which consistently drives high engagement and wagering. This pattern suggests a seasonal dip rather than a cause for long-term concern.
As the major sports leagues remain in their off-seasons during June, it's no surprise that there's a reduction in high-stakes events to captivate bettors. This seasonal ebb in betting activity is to be expected, with historical data backing a robust resurgence alongside the start of major sports seasons.
In conclusion, while June's figures for online sports betting in New York reveal a noticeable drop in both spending and revenue, these trends are consistent with seasonal patterns observed annually. Operators like FanDuel, DraftKings, and Caesars continue to thrive, and the market is poised for an upswing with the advent of the NFL season.