It is sometimes hard to fathom that the New York mobile sports betting scene has only been around since January.
Since that time, New York’s mobile providers have helped the Empire State create a whole new bar in betting activity for a competing U.S. jurisdiction.
In its first 100 days of operation, New York’s mobile sportsbooks reported a staggering $5.3 billion in wagering activity. Over $6 billion has been wagered with the state’s mobile providers since January 8.
Last Monday, the New York State Gaming Commission (NYSGC) released its April figures. They reflected a predictable lull in sports betting activity that has plagued the legal sports betting scene across the U.S. since the end of the bread-and-butter NFL season and the bulk of the March Madness tournament.
While April’s numbers reveal a double-digit dip in overall wagering activity for New York sports betting providers, there is still no denying just how impressive and precedent-setting New York’s wagering scene has been.
Let’s take a deep dive into New York’s April sports betting figures and what we can all take away from its overall numbers.
Diving into April’s Numbers
Sportsbooks in New York took in $1.39 billion in April. While 15.1% lower than the $1.64 billion taken in during March, April’s haul would represent the most significant single monthly handle for any other U.S. jurisdiction not named New York.
That said, $1.39 billion is the lowest monthly total the state has reported since the launch of a broad and comprehensive mobile platform in January, a month that the state took in a national record $1.69 billion in just over three weeks of operation.
So, while slightly concerning that the state experienced a double-digit percentage handle loss, analysts don’t seem too worried about the state going forward.
What About Revenues?
Revenues for New York’s mobile sports betting industry followed the handle downhill in April, although a four-month high of 7.5% hold in April at least mitigated some of the month-over-month revenue declines.
$104,535,898 in revenues were reported by New York sportsbooks for their work during April, a $10.44 million, or 8.9% drop from the profits in March and nearly $20 million less than the record $123.1 million in January.
$53 million in taxes were paid by New York’s sports betting providers to state and local coffers in April, thanks to the state’s nation-high 51% tax rate. A staggering $216.6 million in taxes has already been paid by New York providers from the January 8 launch through April.
By contrast, New Jersey operators have paid $222.7 million in taxes over the last 46 months, and Pennsylvania providers have coughed up $240.9 million in taxes during their previous 41 months of operation.
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FanDuel Leading the Way
FanDuel continued to dominate the sportsbooks in New York, nearly doubling the handle and more than tripling the GGR of the next-best provider DraftKings. Others had a good month too.
April’s sportsbook breakdown is as follows:
- FanDuel – $599,485,964 handle, $63,588,526 revenues
- DraftKings – $327,051,970 handle, $19,637,003 revenues
- Caesars – $215,747,442 handle, $11,803,413 revenues
- BetMGM – $142,155,809 handle, $4,980,574 revenues
- PointsBet – $53,193,312 handle, $1,468,571 revenues
- BetRivers – $37,987,120 handle, $1,809,025 revenues
- WynnBET – $9,374,427 handle, $518,705 revenues
- Resorts World Bet – $5,781,833 handle, $335,808 revenues
Week-over-Week Increases reported
New York is one of the few jurisdictions that publish weekly sports betting figures, and those that thought a May slump for the platform was imminent will be surprised by the industry’s performance in the first week of May.
The week ending May 8 happened to be the second most lucrative seven-day period the overall scene has had since launch on January 8.
The New York State Gaming Commission reports $331.7 million in bets was taken in from May 1-8 and $37 million in gross gaming revenue (GGR).
It represents a $36.6 million week-over-week increase in handle and an impressive $25 million bunce back in gross gaming revenue from the previous week’s low of $12.9 million. The huge jump is primarily due to the 11% statewide hold for sportsbooks in the Empire State during the week.
Week-over-week numbers show FanDuel’s further dominance in the New York market. For the week ending May 8, FanDuel took in $145,144,113 in bets, DraftKings was second with $78,871,062, Caesars reported $52,028,640, BetMGM took in $31,325,596, BetRivers $7,549,694, PointsBet $12,976,974, WynnBET $2,386,678, and Resorts World Bet reported $1,454,193 in bet.
All eight of New York’s mobile providers saw increased activity for the week that ended May 8 – a good sign for the overall industry as we head into what is traditionally the low point for the sports betting industry across the nation.
The legal sports betting momentum in New York is unprecedented. And judging by the first week of May, the state could maybe avoid the summer slump.
As long as the Yankees and Mets continue their torrid starts and as long as tourism in the Empire State continues to see a post-COVID pickup, there is a chance that New York will be able to avoid the inevitable seasonal summer sports betting downturn.
New York’s legal sports betting scene is still waiting on the launch of Bally Bet, which could go live anytime. Hopes for the market are that as many as 16 operators will be competing for gambling dollars by 2024.
Competing sportsbooks in New York will be happy to know that there is a chance that the tax rate may drop. With a proposed legislative increase in sportsbook operators comes a provision that the rate may drop from the present 51% to 35% and eventually to 25%.
So, there’s a lot to look forward to with the New York legal sports betting industry. Will it maintain its torrid pace and minimize the traditionally slow summer betting months? From what we have seen, it’s pretty hard to bet against New York.