Despite the total betting amount in New York's mobile sports betting market falling to its lowest this fiscal year, the market's revenue has grown year-over-year due to an increase in total bets.
According to data from the New York State Gaming Commission, sports betting expenditure in New York reached $1.26 billion (₤988.8 million/€1.16 billion) in July. This is a 31.2% increase from July 2023, but a 14.3% decrease from $1.47 billion in June.
This is the lowest monthly betting amount since August 2023, when it was $1.11 billion.
July is traditionally one of the quieter months in the US sports calendar, with MLB being the only league still in play. However, this July benefited from the opening of the Olympics in the last week, while the Copa America held in the US in the first half of July contributed to the year-over-year growth.
Revenue growth is attributed to an increase in hold percentage. Revenue reached $140.3 million, up 33.5% year-over-year and 4.8% month-over-month. The hold percentage for all operators increased to 11.1%, up from 9.1% in June 2024.
FanDuel continues to dominate New York sports betting
As a licensed operator in New York, Flutter Entertainment's FanDuel remains the strongest operator. In July, FanDuel reported a total betting amount of $482.5 million, revenue of $59.3 million, and a hold percentage of 12.3%, above the market average. DraftKings remains in second place, with a betting amount of $456.7 million, a hold percentage of 10.5%, and revenue of $48 million.
The competition is getting tighter. Caesars Entertainment's clients bet $108.6 million in July, generating revenue of $10.8 million. Fanatics had a hold percentage of 11.7%, meaning its revenue exceeded BetMGM's, which earned $8.9 million from $76.1 million in bets. The Entain-MGM Resorts joint venture reported a betting amount of $89.2 million, but a hold percentage of only 9.7%, meaning revenue was $8.8 million.
The only other operator with revenue over $1 million was Rush Street Interactive, with a betting amount and revenue of $35.4 million.
New York sports betting's total gaming revenue tax is 51%, meaning operators only retained $68.8 million of the $140.3 million revenue in July. The remaining $71.6 million was allocated to the state's education funds.
ESPN Bet is set to launch sports betting in New York
In July, Wynn Interactive ranked last, with revenue of $51,222 and a betting amount of $936,926. Later this month, Penn Entertainment's ESPN Bet will replace Wynn Interactive, which obtained Wynn's New York sports betting license in February.
On Thursday (August 8), during Penn University's second-quarter earnings call, CEO Jay Snowden discussed the prospects of ESPN Bet in the state. Snowden mentioned that with an average monthly visit of 10 million to the New York State ESPN website and app, they could attract customers in a "healthy but cost-effective" manner.
As investors worry about ESPN Bet's market share and the cost of competing with established sports betting giants, Penn University hopes the service will successfully launch in New York.
So far this year, the transaction amount has exceeded $6.67 billion
New York's fiscal year runs from April 1 to March 31, meaning we are now four months into the 2024-25 year. For New York's mobile sports betting, the total betting amount reached $6.67 billion by July 30, a 32.6% increase from the previous year.
FanDuel and DraftKings' betting amounts account for 76.5% of the total, or $5.1 billion. FanDuel's betting amount was $2.58 billion, accounting for 38.7% of all bets, while DraftKings' was $2.52 billion (37.8%). This indicates that ESPN Bet will face a dominant position in New York.
As for revenue, the same period reached $661.4 million, up 32.3% year-over-year, with FanDuel and DraftKings contributing $541.7 million (81.9%). FanDuel's online revenue reached $305.4 million, and DraftKings was $236.3 million.
