New York Sports Betting Revenue Takes a Dip: A Weekly Overview
The New York State Gaming Commission recently released its weekly report, revealing that the eight mobile sportsbooks operating in the state generated a total revenue of $43.5 million for the week ending Sunday. This figure marks a significant decline from the previous week’s impressive near-$70 million revenue, raising questions about the fluctuations in the sports betting landscape.
Handle and Hold: A Mixed Bag
Despite the drop in revenue, the overall handle—the total amount wagered—saw a slight increase of 0.4%, reaching $480.1 million. This represents a 12.1% rise compared to the same week during the NFL season last year. However, the hold, which measures the percentage of wagers retained by sportsbooks, fell to 9.1%. This is a notable decrease of 5.4 percentage points from the previous week, primarily influenced by both BetMGM and Fanatics Sportsbook, which reported sub-4% win rates.
When comparing this week’s revenue to the week ending September 15, there was a staggering 37.1% plunge. However, it’s worth noting that this week’s figures still reflect a 21.2% increase from September 24, 2023, coinciding with Week 3 of the NFL season. All eight sportsbooks reported positive gross revenue, contributing an estimated $22.2 million in state taxes.
FanDuel and DraftKings: The Titans of the Market
In the competitive landscape of New York sports betting, FanDuel and DraftKings continue to dominate. After a record-breaking week where FanDuel raked in $35.1 million, the platform cooled off to $19.3 million last week. Despite this decline, FanDuel maintained its position as the top revenue generator among the eight sportsbooks, achieving an 11% hold from $175.5 million in wagers.
FanDuel’s performance over the last four weeks has been impressive, accumulating $82.8 million in revenue with a 12.1% win rate. The sportsbook has previously reached nine figures in revenue, with a state-record $109.2 million achieved in January.
On the other hand, DraftKings claimed the crown for handle for the second consecutive week, totaling $181.6 million. This marks the third straight week that DraftKings has surpassed the $180 million mark, resulting in $17.4 million in revenue with a solid 9.6% hold. The platform’s recent performance has been noteworthy, with $41 million in winnings over the last two weeks—its highest back-to-back total since May.
The Competition: BetMGM, Fanatics, and Caesars
The competition among the remaining sportsbooks remains fierce. BetMGM, Fanatics, and Caesars were closely matched in handle, separated by just $1.5 million. Caesars led this trio in revenue, generating nearly $3 million from a $35.6 million handle, achieving an 8.3% hold.
Fanatics, which recorded its second-best handle since entering the New York market at $37 million, faced challenges with a 3.7% win rate—the lowest of the week—resulting in only $1.4 million in revenue. BetMGM was slightly better, posting a 3.8% win rate and also generating $1.4 million in revenue from $37.2 million in wagers.
Smaller Players: BetRivers, Bally Bet, and Resorts World
Among the smaller sportsbooks, BetRivers demonstrated resilience with a 9% hold or better for the seventh time in 11 weeks, claiming $891,900 from a $9.3 million handle. Bally Bet and Resorts World rounded out the group, with Bally Bet earning $163,200 from a 6.7% win rate against $2.4 million in wagers, while Resorts World reported a 6.6% hold, winning $93,800 from $1.4 million in accepted bets.
Insights from the Analyst
Chris Altruda, a Senior Analyst at Better Collective US, emphasizes the importance of monitoring these weekly fluctuations in sports betting revenue. With over two decades of experience in sports news, he provides valuable insights into the dynamics of the betting market, particularly as it evolves in states like New York.
For those interested in the latest trends and statistics in sports betting, following Chris on Twitter/X @altruda73 can provide ongoing updates and analysis.
The Bigger Picture
As the New York sports betting market continues to mature, the fluctuations in revenue and handle highlight the competitive nature of the industry. With major players like FanDuel and DraftKings leading the charge, and emerging sportsbooks vying for market share, the landscape remains dynamic and ever-changing. The coming weeks will be crucial in determining how these trends evolve, especially as the NFL season progresses and more bettors engage with mobile sportsbooks.