As summer heats up, New York's online sports betting market has experienced a significant dip, hitting its lowest point in ten months as of June. The total monthly handle recorded for June was $1.47 billion, marking a 25.4% decline from May's $1.97 billion. Despite this drop, June's handle showed a 25.6% increase compared to the same period last year, reflecting the rapid growth of the market over the past year.
The gross gaming revenue for June stood at $133.9 million, which represented a 29% year-on-year increase. However, this figure fell short by 34.1% when compared to May's revenue. The conclusion of the NBA and NFL finals in the first few weeks of June, without a New York team vying for the championship, likely contributed to the drop in betting activity. Historically, summer months are quieter for sports betting, a trend observable across New York and the United States.
Leading the Pack
FanDuel led the operators, posting $67.1 million in revenue from $571.3 million in total wagers for June. The platform made a substantial contribution of $34.2 million in taxes, with cumulative payments into state coffers since January 2022 nearing $998.3 million. DraftKings followed, generating $40.9 million from a $521.6 million handle. Caesars saw customers stake $127.7 million, resulting in $6.8 million in revenue, while BetMGM reported the same revenue from $100.6 million wagered.
Meanwhile, Fanatics reported a handle of $67.3 million with revenue hitting $6.7 million, and an impressive hold percentage of 9.96% in June. Rush Street Interactive accumulated $2.5 million from $68.8 million in total wagers. Among the smaller players, BallyBet, Resorts World, and Wynn Interactive posted revenues of $658,294, $572,891, and $66,665 respectively.
Factors Contributing to the Decline
Several contributing factors can explain the notable decline in June. Besides the seasonal quietude, the conclusion of major sports leagues like the NBA and NFL left fewer high-stakes events to engage bettors. The MLB season, which runs through the summer, traditionally does not drive significant betting activity. Other noteworthy events in June include horse racing's Belmont Stakes, golf’s US Open, and the Copa América football tournament, which was held in the US for only the second time this year. Despite these events, June remained a relatively slow month for sports wagering.
June is typically the strongest of the summer months for sports betting, but it still recorded spending levels not seen since August 2023, when consumers wagered $1.11 billion. The month’s revenue figures were barely higher than the $131.4 million posted in February, another quieter period for the industry.
Market Predictions
The sports betting market often sees a further decline in July, with a slight recovery in August. It isn't until September, when the NFL season begins, that the market truly heats up again. The NFL season consistently drives high engagement and wagering, propelling the industry into robust figures.
In summary, the drop in betting activity in June is not entirely unexpected given the context of major sports leagues being in their off-seasons and the traditional lull associated with the summer months. As the sports calendar moves towards the fall, the market is likely to experience a resurgence, buoyed by the excitement of the NFL season and other significant sporting events. For now, the data underscores the cyclical nature of sports betting and its dependence on the broader sports schedule.