New York’s Sports Betting Handle Fails to Reach US$400M

After the return of NFL football New York saw a surge of mobile sports betting activity and revenue, which has now cooled down. In the latest report from the New York State Gaming Commission, the eight active sportsbooks recorded a wagering handle of US$393.5 million for the week ending on October 8, 2023. Breaking the US$400+ million streak after four weeks.

Launched on January 8, 2022, the Empire State’s regulated market for online sports betting is currently among the leading ones in the U.S. It produces just over US$700 million in tax revenue from placed wagers for the state in its first 12 months of online work, which was invested into education, youth sports, and tackling problem gambling.

Breaking the Streak

New York saw betting volume when NFL and college football came back in September and produced four weeks in a row with a handle above the US$400M mark. However, for the seven-day period ending on October 8, 2023, the weekly handle dropped to US$393.5 million or 16% less than the previous week. It was the lowest one since the US$312 million from September 3, 2023.

Meanwhile, on the gross gaming revenue front, for the week of October 8, the eight up-and-running operators generated proceeds of US$30.9 million. This was a 15% improvement over the previous week. It was also the fourth total of US$30 million or more in the last ten weeks. The revenue translated into a 7.9% hold for bookmakers which was also an increase from the prior week.

FanDuel in the Lead Again

For the seven-day period of October 8, FanDuel led the pack as it produced the largest handle for the week with US$160.6 million. However, this was a decrease from its previous week of around 9.2%. Meanwhile, DraftKings experienced a much steeper decline in betting volume, as the app reported a handle of US$140.1 million from US$196.1 million. Both got a GGR of over US$12 million.

Up next was Caesars Sportsbook which clocked the third-best handle with US$40.9 million. The company was followed by BetMGM in fourth with US$23.6 million in wagering activity. In the meantime, Resorts WorldBET recorded just under US$2 million in bets but it generated a hold of 16.9%. The sportsbook was the only one with win rate in the double digits.

Gambling Issues are on the Rise

However, a recent report by New York State Comptroller Thomas DiNapoli has outlined the downside of the rising popularity of mobile sports betting in the Empire State. It found that despite the massive amount of revenue, the launch of the sector led to a 26% increase in problem gambling-related calls to the Office of Addiction Services and Supports from the previous fiscal year.

In the report, he noted the rise in calls should lead to more attention on the impact of mobile sports betting, especially on younger demographics. Mr. DiNapoli that explained gaming has expanded tremendously in the last several years, and due to its 24/7 availability via mobile apps, problem gambling and addiction are certain to become more prevalent.

Source: Senkiw, Brad “New York’s Weekly Handle Falls Below $400 Million for First Time in a Month” Covers, October 13, 2023