New York Sports Betting Industry Showing Its Strength Deep Into Summer
It has been all positive news from the New York State legal sports betting industry since their long-awaited adoption of a mobile platform in January. That is until summer hit and even the Empire State was hit with the traditional sports betting slump that had characterized the broader U.S. scene since the 2018 Supreme Court decision to overturn its blanket ban on sports wagering.
Overall handles and revenue totals have been on a steady, yet predictable slide since March and April, when the last huge marquee American sporting event concluded. The bad news is that the slump will continue for another six or so weeks. The good news is that September and the start of the NFL season are right around the corner, as is a major jolt for the sports betting industry in New York.
Let’s take a look into the present, past, and future of New York’s legal sports betting scene.
The Latest Numbers From New York
Unsurprisingly, New York's combined retail and mobile sportsbooks have been dealing with the reality of its first-ever slump. The week that ended July 17 was the worst seven-day period since mobile providers went live in the state in early January. Last week's totals were a continuation of the expected seasonal downturn for the overall scene and the fourth straight week of measurable handle declines.
The week that ended July 17 saw just $183.9 million in betting activity and a paltry $6.2 million in sportsbook revenues. The totals were a drop from the week before when sportsbooks in the Empire State took in $190.2 million in bets and made $27 million in profits. Revenues going from $27 million to $6.2 million in one week are definitely eye-opening.
The combined two-week period puts New York State's sports betting handle to come in far below the $1 billion mark for the first time since mobile providers launched back in January. All eyes will be on July’s overall figures that are due for release near the end of the first week of August.
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FanDuel Leaders So Far
It was FanDuel Sportsbook that once again dominated the wagering activity in New York for the one-week period that ended July 17. The state of New York has helped FanDuel increase its market share lead in the U.S. legal sports betting industry to a staggering 38% market share in the legal sports betting market as of January 2022.
The Top-3 New York Sportsbooks for July 10-17 by mobile wagers are as follows:
FanDuel -$76.5 millionDraftKings Sportsbook- $52.1 millionCaesars Sportsbook- $27.9 million
Six-Month Snapshot
It is a good time to take a look at the January peak and the June valley of the New York legal sports betting industry, to show just how much legal sports betting has slowed in the state. It was only January that mobile providers launched and not only effectively changed the landscape of the New York scene but also re-set the bar in the broader U.S. industry.
January - $1,686,263,898 handle with $123,130,126 revenuesFebruary - $1,534,078,894 handle with $81,424,598 revenues March - $1,644,789,692 handle with $114,956,204 revenuesApril - $1,396,791,941 handle with $104,535,898 revenuesMay - $1,269,862,570 handle with $110,418,075 revenues June - $1,056,694,012 handle with $72,441,500 revenues
We see a $680 million drop-off in sports betting activity between January and June, with July and August figures promising to be even lower than that.
The Tax Situation
New York is definitely benefitting from tax revenue generated from the state's astoundingly popular mobile betting platform. Gov. Kathy Hochul announced on July 13 that her state has collected $302.3 million in mobile sports wagering tax revenue in the six months since the mobile launch.
“In just six months, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers.”
Gov. Kathy Hochul on tax revenue from New York's legal sports betting scene
For comparison's sake, New Jersey's scene has generated $242 million since 2018, and Pennsylvania is at $272 million in tax revenue. Nevada hasn't even hit $100 million since 2018!
The Future For New York
New York's weekly and monthly sports betting dips were to be expected. Years of data for top producing jurisdictions around the U.S. all show a sharp drop in sports betting activity during the summer months.
The good news is that the New York Jets, New York Giants, and Super Bowl favorite Buffalo Bills are ramping up for the 2022 NFL Season, and the New York Yankees and the New York Mets are fun to watch right now. The New York Knicks and Brooklyn Nets, not so much!
The reality is New York is and will be the top legal sports betting state in the country, and the state will continue to benefit. There is a lot to love about the New York legal sports betting scene as it maintains its status as the most talked about legal sports betting industry in the country, if not the world.
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