For only the second time since the launch of sports betting in New York, top-rated sportsbooks generated over $200 million in one month due to a double-digit win rate.
Duopoly Leads the Way
It was a magnificent May for New York’s sportsbooks with revenues topping $203.3 million according to the New York Gaming Commission. It was the second-highest revenue-generating month since sports betting launched in the Empire State back in January 2022. The highest revenue-producing month occurred in January of this year with $211.5 million.
The state’s sportsbooks accepted $1.97 billion in wagers and because of an average 10.2% hold (win rate), the books and New York’s tax coffers made a bundle. Revenue was up over 33.8% from last May while the handle was up 46% year-over-year. The state hauled in $103 million in May due to its highest-in-the-nation tax rate of 51% on adjusted gross revenues.
Not surprisingly, DraftKings and FanDuel dominated with 85% of the revenues and 79.1% of the betting handle. The former was the busiest sportsbook in May, accepting 812.3 million in wagers while the latter took in $747.5 million. However, FanDuel had a higher hold which proved to be critical in winning the revenue race with $88 million while DraftKings profited $84 million despite accepting nearly $65 million more in wagers.
The Big Picture
May 2024 handles and revenues for New York’s top online sports betting platforms are as follows:
- DraftKings: $812.3 million handle – $84.2 million revenue
- FanDuel: $747.5 million handle – $88 million revenue
- Caesars: $160.1 million handle – $11.1 million revenue
- BetMGM: $117.3 million handle – $8.2 million revenue
- Fanatics: $71.7 million handle – $7.0 million revenue
- BetRivers: $45.5 million handle – $3.6 million revenue
Union Against iGaming
State Senator Joseph P. Addabbo Jr. was one of the driving forces that brought mobile sports betting to New York. But he’s not about to stop there, as Addabbo is also pushing for the ever more lucrative online casino gambling, also known as iGaming, through his sponsored bill, SB8185.
However, not everyone agrees and one of the chief obstacles in the way of iGaming in New York is the Hotel and Gaming Trades Council (HTC). This is the union that represents thousands of hotel and casino workers in the state and with three downstate casino licenses still in the process of being issued, the timing for iGaming legislation is far from perfect.
Bhav Tibrewal, political director at the HTC, was vocal in his organization’s opposition saying earlier this year, “We’re not shy about our opposition. We’re sharing our opposition across the entire state legislature.”
“We believe that iGaming will only have a negative impact on the jobs at the brick-and-mortar casinos in New York State and on the New Yorkers who rely on those jobs,” Tibrewal added.
The union executive believes iGaming will cannibalize jobs at the land-based casinos at a time when three of the biggest have yet to be even built. But Addabbo rebuts that claim by pointing out that iGaming and brick-and-mortar casinos have worked seamlessly together in neighboring New Jersey for several years.
The 2023 financial report issued by the New Jersey Division of Gaming Enforcement revealed in-person gaming revenue had increased 2.2% compared to the year before the $2.85 billion generated from slot machines and table games in 2023 was the highest annual total since 2013 with $2.86 billion in revenues.
