New York Sports Betting Revenue Shows Limited Growth in October

launch in the state, adding competition to New York’s sports betting landscape.

FanDuel and DraftKings Compete Closely in the Market

FanDuel maintained its position as the state’s leading sportsbook, achieving a hold rate of 8.5%, which was notably higher than most of its competitors. This performance yielded a handle of $908 million, resulting in revenue of $77.3 million. Although FanDuel experienced a 2% increase in its handle, its revenue saw a decline of 7% compared to October 2023, highlighting the challenges of maintaining high revenue margins despite volume growth.

DraftKings, FanDuel’s closest rival, saw its handle rise significantly by 25% to $814 million. However, with a slightly lower hold rate of 7.2%, its October revenue reached $58.9 million—a minor decrease of 1%. The difference in hold rates between these two major operators underscores the competitive pressures within New York’s sports betting market, as they vie to attract and retain a growing base.

October was ESPN Bet’s first complete month in New York, during which the platform managed to generate a handle of $41 million, resulting in revenue of $3.2 million. Despite the solid entry, ESPN Bet’s revenue was narrowly edged out by BetRivers, which recorded $3.5 million in revenue on a slightly higher handle of $46 million.

Fanatics Sportsbook also made a significant showing, emerging as the most successful among non-FanDuel/DraftKings platforms. With a handle of $178 million, Fanatics achieved a revenue of $12.4 million, further solidifying its position in New York’s market. Caesars Sportsbook followed closely with $10.9 million in revenue from a handle of $155 million, while BetMGM, despite a higher handle of $161 million, reported a lower revenue of $9.5 million due to a relatively modest hold rate of 5.9%.

At the other end of the spectrum, Resorts World Bet and BallyBet recorded comparatively low revenues. Both operators stayed under the $1 million threshold, with each generating around $300,000 on handles of $7 million and $11 million, respectively, which highlights the challenges faced by smaller operators in achieving traction within this competitive market.

Legislative Efforts to Address Gambling Addiction

In parallel with the sports betting sector’s growth, New York’s state government has introduced new legislation to tackle the potential downsides of increased gambling activity. Governor Kathy Hochul recently enacted bill S1550/A1118, which mandates that all gambling-related ments include clear warnings about the risks of addiction. This legislation builds on earlier requirements that gambling ads must prominently display the problem gambling hotline number. Now, mobile sports betting ments, along with traditional ads, must follow these same guidelines.

This regulatory step underscores the state’s commitment to raising public awareness about the potential dangers associated with gambling. By expanding these protections, New York aims to ensure that residents have access to information on how to gamble responsibly and where to seek help if needed. The addition of these safeguards, combined with previous legislative moves, reflects a comprehensive approach to mitigating the potential harms linked to gambling, even as the market itself continues to grow.

The evolving dynamics of New York’s online sports betting industry, combined with heightened regulatory measures, indicate both the economic impact and social considerations surrounding the expansion of legalized sports betting. As new entrants like ESPN Bet continue to make headway and existing operators adjust strategies to maintain their hold rates, New York’s market remains one to watch, not only for revenue trends but also for regulatory responses aimed at responsible gambling practices.

Source:

”Low hold saps New York online sports betting revenue in October”, cdcgaming.com, November 07, 2024.