New York Sports Betting: Bettors Triumph in a Low-Revenue Week
In a surprising turn of events, New York’s online sports betting scene has seen bettors reveling in victory amidst a week that has proven to be financially challenging for gaming operators. According to the latest report from the New York State Gaming Commission, the week ending October 20, 2024, recorded an impressive online sports betting handle of $548.3 million. This figure represents a remarkable increase of nearly $65 million from the previous week. However, the silver lining for bettors was overshadowed by the dip in gross gaming revenue, which dropped to just $10.4 million, marking it as one of the least profitable weeks for operators since the inception of online sports betting in the Empire State.
A Closer Look at the Figures
The New York State Gaming Commission reported a total handle of $548,359,081 for the week. Despite the substantial increase in the amount wagered, the corresponding gross gaming revenue fell by over $10 million compared to the prior week. This week’s revenue ranks as the fifth least profitable for operators since the statewide launch of legal online sports betting in January 2022. For context, the least profitable weeks are:
- February 11, 2024: $5,056,663
- July 17, 2022: $6,215,891
- September 3, 2023: $8,303,408
- December 18, 2022: $9,988,187
- October 20, 2024: $10,448,699
This data indicates that while bettors may have enjoyed success during this week, it also raises questions about the overall profitability of the operators involved.
Top Performers Among Sportsbooks
In examining the performance of individual sports betting operators, it is evident that New Yorkers favored certain platforms more than others. Here’s a breakdown of the handle reported by the nine active sportsbooks within the state for the week ending October 20, 2024:
- FanDuel NY: $207,868,686
- DraftKings NY: $198,276,055
- Fanatics Sportsbook: $40,314,664
- Caesars Sportsbook NY: $39,494,280
- BetMGM NY: $38,631,423
- BetRivers: $11,106,028
- ESPN BET: $8,149,078
- Bally Bet: $2,761,376
- Resorts World: $1,757,491
Notably, FanDuel retained its dominance by surpassing $21 billion in total handle since inception, a milestone unmatched by its competitors. DraftKings followed closely behind, indicating that these two platforms continue to lead the charge in New York’s thriving online sports betting landscape.
Financial Implications and Tax Revenue
For the sports betting week in question, the gross gaming revenue was notably low at $10,448,699. Given New York’s hefty 51% tax rate on online sports betting, this generated approximately $5,328,836 in tax revenue, a necessary contribution to the state’s coffers. The breakdown of revenue for the top sportsbooks is as follows:
- FanDuel: $5,883,194
- Fanatics Sportsbook: $2,257,302
- DraftKings: $1,479,466
- ESPN BET: $537,911
- Caesars: $515,351
- BetRivers: $495,547
- Resorts World: $50,411
- Bally Bet: ($270,933)
- BetMGM: ($499,551)
Despite these figures, the lower revenue this week suggests that while betting volumes were high, the outcomes favored bettors more than the sportsbooks.
Historical Context and Future Outlook
Since the launch of online sports betting in New York on January 8, 2022, the total gross gaming revenues have accumulated to remarkable figures, notably led by FanDuel and DraftKings. The total revenues since launch illustrate a lucrative industry, although periodic fluctuations like the recent drop present both challenges and opportunities for the operators and the state alike.
As New York continues to fine-tune its sports betting regulations and operators adapt their strategies, the market’s potential remains vast. However, the events of this past week serve as a reminder of the unpredictable nature of sports outcomes and betting as a whole. Whether this low-revenue moment is a trend or a mere blip in the robust landscape of New York sports betting will be revealed in the coming weeks as sports seasons unfold and bettors continue to engage with their favored platforms.
