After a relatively slow April 2023 in terms of online sports betting activity, New York has finished the month on a strong foot. Last week, the New York State Gaming Commission reported that for the week ending on April 30, 2023, the online market and its sportsbook handled over US$374.2 million in wagering handle. This was a slight increase of just US$1 million over the prior week.
The Empire State’s mobile sector for betting on sports debuted in January 2022, and it allows for nine digital sportsbooks to accept and offer wagers on various sports from all around the world. Thanks to the New Yorkers’ passion for sports, the state quickly transformed into the top mobile sports betting jurisdiction in the country, with over US$700 million in tax revenue in its first year.
Strong End to April 2023
In its latest weekly number reports, the New York State Gaming Commission disclosed that for the week concluding on April 30, 2023, local sports bettors placed US$374/2 million online wagers through the nine apps. This was the best total tally for the month of April while putting the total monthly handle for the month to over the US$1.4 billion mark.
But despite the slight increase in total activity, it was a week which saw a decrease in gross gaming revenue, as the nine operators reported total revenue of US$37.8 million. This was a massive dropdown from the previous US$45 million. Meanwhile, the hold for operators for the last week of April was 10.1%, also down from the prior week with 13%.
FanDuel is Still King
For the aforementioned week, FanDuel reported a drop in revenue for the second week. However, the app is still the sports bettors’ choice as it collected the largest wagering volume. The local-based sportsbook reported a handle of US$150.7 million and gross proceeds of US$18 million. The volume was similar to its previous week, but revenue dropped from US$20 million.
DraftKings again stood second in the market, and it disclosed a total handle of US$129.3 million, which was an increase in its previous results. But still, revenue dropped from US$15.8 million to US$12.2 million. Caesars Sportsbook generated a handle of US$41.7 million, which was its highest for the month, while BetMGM recorded a strong handle of US$25.5 million.
Probing Effects on the Market and Taking Measures
But amidst the success of the mobile sports betting model, the Western New York Problem Gambling Resource Center is concerned about the possible impact on residents and is examining its effects. It reported calls to the organization doubled last year while also noting that the target of mobile sports betting was college-age students and that the 18-35 demographic was drastically affected.
In the meantime, the New York State Gaming Commission voted in favour of stricter ads on sports betting. And one of its changes was in regards to advertising and marketing of sports wagers to college and university campuses. In addition to that, a prohibition of false, deceptive or misleading statements has also been approved by the regulator’s members.
Source: Senkiw, Brad “New York Closes Out April with Slight Handle Increase in Final Week” Covers, May 5, 2023