There’s an old saying that “two is better than one.” Well, it proved true for New York sports betting operators in May.
New York sportsbooks raked in over $200 million in revenue last month, driven by simultaneous NBA and NHL playoff action from the New York Knicks and the New York Rangers. This marks the second time post-PASPA that the Empire State achieved this milestone.
The New York Gaming Commission reported May revenue of $203.3 million, the second-highest total since online wagering went live in January 2022. May revenue came within $8.2 million of this January’s all-time mark.
This run was fueled by the Knicks reaching the conference semifinals, the Rangers making it to the NHL conference finals, and the Yankees winning 21 of their 28 games in May.
The state collected a substantial nearly $104 million in tax revenue due to the high 51% tax rate, which was an increase of $10 million compared to April.
Online Sportsbooks Dominate in New York in May
New York’s nine online sportsbooks also generated a handle of $1.97 billion and a double-digit hold in May.
DraftKings had its best month ever in New York, which contributed to a near-record month for the industry. The operator reported impressive year-over-year growth, with bets rising more than 70% to $812 million and revenue jumping nearly 80% to a little more than $84 million. Although DraftKings led in handle, FanDuel edged ahead in revenue, but the pair made up nearly 85% of the total May revenue.
Newcomer Fanatics enjoyed a 276% surge in handle and a 478% increase in revenue to $7 million, not far behind BetMGM.
Caesars Sportsbook ended the month in third place, grossing $11.1 million (a 20% decrease) from $160 million in wagers (a 2% decline).
New York Sports Betting Market is Maturing
Not only did New York operators benefit from the Knicks and Rangers’ playoff runs, and the Yankees’ monumental May, but they took advantage of a market that is much more mature in 2024.
Compared to two years ago, when the Knicks missed the playoffs and the Rangers reached the conference finals, the monthly handle was $1.2 billion, and revenue was nearly half of what it was in May 2024. But back then, online sports betting in New York was only six months old.
New York is now the first state to beat $200 million in monthly sports betting revenue on two separate occasions in the post-PASPA era.
And take a look at this lineup of sports betting numbers that just keep going up:
- Year-to-date handle: $9.55 billion (up 19.6% from 2023)
- Revenue: $883.4 million (up 23.7% from 2023)
- Hold from January to May: 9.3% (up 0.3% from last year)
- Taxes: $448.8 million (an increase of $85.8 million from 2023)
Records are made to be broken, and it seems that every month, when the sports betting revenue numbers are released in New York, another one falls.
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