As June wrapped up, New York witnessed an unusual downturn in its vibrant online sports betting scene, recording a dramatic dip to the lowest spending levels in ten months. Observers have noted that player spending has fallen significantly, tallying a mere $1.47 billion in total monthly handle, the smallest figure since August 2023. This marks a concerning 25.4% decline from the previous month’s $1.97 billion. Despite this drop, it still represents a 25.6% year-on-year increase compared to June of last year.
Interestingly, June's gross gaming revenue was pegged at $133.9 million, marking a 29.0% rise from the same period last year. Still, this figure is 34.1% short of May's earnings. The cessation of the NBA and NFL finals—the traditional heavyweights in driving sports betting engagement—during the first few weeks of June could explain this notable downturn. Notably, neither of these finals featured a New York team fighting for the championship, likely contributing to the reduced local interest.
The Summer Slump
Historically, the summer months tend to be quieter for the sports betting industry, not just in New York but across the United States. Common summer sports like Major League Baseball (MLB) do not typically generate significant betting activity. The MLB season, which runs through the summer, didn't appear to buck this trend. Despite June being a relatively strong month for summer betting—thanks in part to events like horse racing’s Belmont Stakes, golf’s US Open, and the Copa América football tournament—the overall engagement remains low.
Interestingly, the Copa América, taking place in the U.S. for only the second time this year, did little to stimulate the betting markets. As a result, industry insiders were not surprised to see the usual summer slump manifest in the numbers, with expectations of further declines in July. However, August may see a slight recovery, culminating in a resurgence come September with the onset of the NFL season.
Leaderboard Performance
Within the operator landscape, FanDuel emerged as the leader, raking in $67.1 million in revenue from $571.3 million in total wagers for June. FanDuel also paid a substantial $34.2 million in taxes for the month and has contributed nearly $998.3 million to state coffers since January 2022. DraftKings followed, generating $40.9 million from a $521.6 million handle. Caesars reported a total customer stake of $127.7 million, yielding $6.8 million in revenue. BetMGM also matched Caesars' revenue with $6.8 million, albeit from a lower handle of $100.6 million.
Fanatics, another key player, reported a handle of $67.3 million and revenue of $6.7 million, boasting a hold percentage of 9.96%. Rush Street Interactive and BallyBet lagged behind, generating $2.5 million and $658,294 in revenue from $68.8 million and unknown total wagers, respectively. Resorts World was slightly lower with $572,891, and Wynn Interactive rounded off the list with $66,665 off $1.5 million in wagers.
The Road Ahead
The current figures might paint a dismal picture, but analysts suggest this is part of a well-known seasonal pattern. June, despite its uniqueness in the sports calendar, typically sets the tone for a less active summer before witnessing a vigorous resurgence in autumn. With September just around the corner, anticipating the NFL season's kickoff is the silver lining for New York’s sports betting industry. Historically, the NFL season has been a massive driver of high engagement and wagering. The upcoming months will undoubtedly be critical for the market's recovery and robust growth.