New York’s mobile sports betting market saw a rise in revenue for July 2024, even as the total betting handle fell to its lowest level for the current fiscal year. According to figures released by the New York State Gaming Commission, the total sports betting spend for July was $1.26 billion, marking a decrease of 14.3% from June’s $1.47 billion but a 31.2% increase from August 2023.
Revenue Growth Driven by Improved Hold
Despite the dip in betting activity, revenue from mobile sports betting in New York reached $140.3 million in July, reflecting a 33.5% year-on-year increase and a 4.8% rise compared to the previous month. This growth was largely attributed to an improved hold rate, which increased to 11.1% from 9.1% in June 2024.
FanDuel Leads Among New York Operators
Among New York’s licensed sports betting operators, FanDuel, part of Flutter Entertainment, maintained its leading position. In July, FanDuel reported $59.3 million in revenue from a handle of $482.5 million, achieving a hold rate of 12.3%, which outpaced the market average. DraftKings followed with a handle of $456.7 million and generated $48 million in revenue with a 10.5% hold rate.
The competition among other operators was tight. Caesars reported $108.6 million in bets, resulting in $10.8 million in revenue, while Fanatics edged out BetMGM with $8.9 million in revenue from $76.1 million in bets, thanks to an 11.7% hold rate. BetMGM, despite having a higher handle of $89.2 million, generated slightly less revenue at $8.8 million due to a lower hold of 9.7%.
Rush Street Interactive also performed notably, with $35.4 million wagered, generating just over $1 million in revenue. Meanwhile, Wynn Interactive posted $51,222 in revenue from a handle of $936,926, the lowest among operators.
Tax Contributions and Upcoming Changes
New York’s sports betting operators were subject to a 51% gross gaming revenue tax, leaving them with $68.8 million out of the $140.3 million total revenue for July. The remaining $71.6 million was allocated to the state’s education fund.
Looking ahead, Penn Entertainment’s ESPN Bet is set to replace Wynn Interactive later this month after acquiring its New York sports betting license in February. CEO Jay Snowden highlighted ESPN Bet’s potential during Penn’s Q2 earnings call, noting the 10 million average monthly visitors to ESPN’s digital platforms in New York, which could support a “healthy but cost-effective” customer acquisition strategy.
Year-to-Date Performance
As of the end of July 2024, the total handle for the current fiscal year reached $6.67 billion, a 32.6% increase compared to the previous year. FanDuel and DraftKings continue to dominate, accounting for 76.5% of the total handle, or $5.10 billion, with FanDuel alone representing 38.7% and DraftKings 37.8%. In terms of revenue, the total reached $661.4 million, with FanDuel and DraftKings contributing $541.7 million, or 81.9% of the total.
Source:
New York sports betting revenue rises despite handle falling to 2024-25 low, igamingbusiness.com, August 12, 2024.
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