New York sports bettors were back in action after a predictable July slump in wagering activity, but a lower-than-expected hold saw month-over-month revenue fall.
High Hold, Low Yield
July’s $1.21 billion handle in New York was the first in 10 months that did not eclipse $1.4 billion, but an impressive 11.1% hold saw revenues soar to $140.9 million for the state’s sportsbooks. Quite the opposite was true in August, as the handle was propped up by the advent of the NFL preseason and the beginning of college football.
August’s handle was $1.4 billion, an 11% increase over July, but a collective hold of 8.7% dampened revenues to $125 million, of which the state took its customary 51% share of $63.8 million. The handle proved to be a 27.3% increase over August 2023, and revenues for both the sportsbooks and the state’s tax coffers were also up 27% from last year.
Now that the dog days of summer are over and people are returning from their vacations, coupled with a full slate of regular-season NFL and college football, September will likely see a sharp increase in sports betting from punters in the Empire State.
DraftKings Most Popular in New York
Boston-based DraftKings led all challengers in the New York market in August with $526.6 million in handle, netting $43.3 million. FanDuel claimed the second spot with $511.6 million in accepted wagers, but due to a higher hold (win rate), the subsidiary of Flutter Entertainment won the day with $52.6 million in revenues for August.
BetMGM made the handle podium with $127.9 million, but its relatively low hold generated just $7 million in revenues compared to Caesars, which took in nearly $9 million less in wagers ($119.1 million) but delivered the third-highest revenues of $9.4 million in August.
Fanatics made a respectable appearance on our list with $93.1 million in sales producing $8.5 million in revenues, while BetRivers reported a handle of $40.7 million, which netted only $3.2 million in revenues. Resorts World and BallyBet posted monthly profits of $500,000 and $400,000, respectively.
WynnBet Bids Adieu
WynnBet exited the New York sports betting market at the end of July, marking the company’s latest exodus in the online gaming market, including departures in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia.
WynnBet plans to focus on its land-based casino operations, but it is still live in Nevada and Massachusetts, where its domestic properties are located.
In a statement from Wynn Resorts Chief Financial Officer Julie Cameron-Doe regarding the company’s pivot away from the mobile sports betting industry, she stated:
“In light of the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting, we believe there are higher and better uses of capital deployment for Wynn Resorts shareholders.
“While we believe in the long-term prospects of iGaming, the dearth of iGaming legislation and the presence of numerous other investment opportunities available to us around the globe have led us to the decision to curtail our capital investment in WynnBet to focus primarily on those states where we maintain a physical presence.”
WynnBet sold its New York sports betting license to PENN Entertainment, which will be launching under its ESPN BET brand in the near future.
