Don’t call it a comeback. OK, we will.
Despite July being one of the slowest months for sports betting, New York defied the odds and bounced back from a down June with an impressive 11.3% hold.
According to the New York Gaming Commission, the monthly handle dropped 14.4% from June to $1.26 billion. Yet, revenue for July climbed nearly 5% to $140.3 million, driven by a win rate increase of more than 2%.
The MLB All-Star break led to the lowest weekly handle in nearly a year. With only baseball games, the close of a few soccer tournaments, and the start of the Olympics, a decline in betting was expected.
Nonetheless, the total amount wagered surged by more than 31% compared to July 2023, while revenue jumped nearly 34% year-over-year.
Fanduel Continues To Dominate in New York
Interestingly, none of the online sportsbooks reported a revenue loss in July, and five of the nine operators saw their profits go up compared to the previous month. And, as is usually the case, FanDuel led the way.
FanDuel kicked off the second half of 2024 with a July handle of $482.5 million. While this marked their lowest monthly amount wagered since August 2023, there’s more to the story.
FanDuel’s year-to-date handle stands at an impressive $4.95 billion, reflecting a 23.4% increase compared to the first seven months of 2023. Additionally, the operator raked in $550 million in gross revenue during 2024.
Not to be outdone, DraftKings saw a significant revenue jump. After earning almost $41 million in June, they pulled in $48 million in July. Their 10.5% hold on a nearly $457 million handle outperformed FanDuel’s 10.2% win rate.
Caesars secured the third-best handle in New York last month, surpassing $100 million. Meanwhile, BetMGM, with the fourth-best handle, also experienced growth. Both operators maintained holds just below 10%, ensuring more profitable outcomes in July (compared to the month before).
Fanatics also enjoyed a month-over-month increase in handle of more than 13%. This boost translated to a revenue increase of over $2 million compared to June.
More Restrictions Looming for Sports Betting Operators
Amid the celebration of the strong July revenue numbers in New York, there is a concern amongst sportsbook operators who may be facing new restrictions soon.
Assemblyman Clyde Vanel introduced Assembly Bill A10658. It aims to align mobile sports wagering licensees with the advertising restrictions already applied to casino operators.
If passed, it would require sportsbooks to ensure their ads are factual and free from misleading elements, prohibit ads showing anyone under 21 engaging in gambling, and mandate the inclusion of a problem gambling hotline in all advertisements.
The bill also allows individuals to opt out of direct advertising and would require sportsbooks to submit ads for state approval, retain ad records for two years, and comply with any removal requests from the New York State Gaming Commission.
The bill is currently in the Assembly’s Racing and Wagering Committee, and will also be reviewed by a concurrent Senate committee before potentially advancing to the full Assembly and Senate. If signed into law, A10658 would take effect 90 days later.
But the sports betting market in New York appears to be as resilient as the people who live there. As the market evolves operators and regulators will need to consider these potential changes and adjust their strategies accordingly. Just like they did from June to July.
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