New York Sports Betting Sees $1.26B Handle in July 2024

New York’s sports betting industry recorded a total handle of $1.26 billion in July 2024, according to the Total Mobile Sports Wagering Gross Gaming Revenue (GGR) and Taxes – Fiscal Year 2024/2025 report [pdf] released by the New York State Gaming Commission. This amount represents a 31.2% increase compared to August 2023 but a 14.3% decline from the $1.47 billion wagered in June 2024. The July figure is the lowest monthly handle since August 2023 when $1.11 billion was wagered.

Impact of Seasonal Sports Activity

July is typically a slower month for sports betting in the United States due to the limited sports activity during this period. Major League Baseball (MLB) is the only major league in action, contributing to the overall lower betting activity. However, this year, the start of the Olympic Games in the final week of July and the Copa América soccer tournament, which the United States hosted during the first half of the month, contributed to year-on-year growth in the betting handle.

Despite the lower handle, revenue from sports betting in New York increased significantly. The total revenue for July 2024 reached $140.3 million, reflecting a 33.5% year-on-year increase and a 4.8% month-on-month rise. This growth in revenue can be attributed to a stronger hold across all operators. The hold for July improved to 11.1%, compared to 9.1% in June 2024.

Flutter Entertainment’s FanDuel continues to dominate the New York sports betting market. In July, FanDuel generated $59.3 million in revenue from a total handle of $482.5 million, achieving a hold of 12.3%, which is higher than the market average. DraftKings, the second-largest operator, reported a handle of $456.7 million and $48 million in revenue, with a hold of 10.5%.

Other operators in the market also contributed to the overall revenue. Caesars, with a handle of $108.6 million, generated $10.8 million in revenue. Fanatics reported $8.9 million in revenue from $76.1 million in bets, suring BetMGM, which recorded a handle of $89.2 million and revenue of $8.8 million. Rush Street Interactive was the only other operator to generate more than $1 million in revenue, with $35.4 million wagered.

Taxation and Allocation of Revenue

New York imposes a 51% gross gaming revenue (GGR) tax on sports betting operators, which significantly impacts the revenue that operators retain. In July, operators kept $68.8 million of the total $140.3 million in revenue. The remaining $71.6 million was allocated to education funding in the state, demonstrating the significant financial contribution of sports betting to public services.

Wynn Interactive, which posted $51,222 in revenue from a handle of $936,926 in July, will soon exit the New York sports betting market. Penn Entertainment’s ESPN Bet is set to replace Wynn Interactive after acquiring its New York sports betting license in February 2024. During Penn’s Q2 earnings call on August 8, CEO Jay Snowden expressed optimism about ESPN Bet’s prospects in New York. Snowden highlighted that ESPN’s media platforms attract 10 million average monthly visitors in New York, which Penn plans to leverage for a “healthy but cost-effective” customer acquisition strategy.

The launch of ESPN Bet in New York is highly anticipated, especially considering the challenges of competing against established giants like FanDuel and DraftKings. Penn Entertainment is confident that ESPN Bet’s brand recognition and extensive media reach will enable it to carve out a significant share of the market.

Year-to-Date Performance

As of the end of July 2024, four months into New York’s financial year (which runs from April 1 to March 31), the total handle for mobile sports betting in the state has reached $6.67 billion. This represents a 32.6% increase compared to the same period in the previous year. FanDuel and DraftKings have maintained their strong market positions, ing for 76.5%, or $5.10 billion, of the total handle. FanDuel reported a handle of $2.58 billion, representing 38.7% of all wagers, while DraftKings followed closely with $2.52 billion, ing for 37.8% of the total.

In of revenue, the first four months of the financial year have generated $661.4 million, a 32.3% increase year-on-year. FanDuel and DraftKings have again dominated, with the two companies together ing for 81.9%, or $541.7 million, of the total revenue. FanDuel’s online revenue reached $305.4 million, while DraftKings reported $236.3 million in online revenue.

Source:

”New York sports betting revenue rises despite handle falling to 2024-25 low”, igamingbusiness.com, August 12, 2024.