When a billion is a benchmark, an $800 million month when it comes to sports betting handle can feel disappointing. According to reports released by the New York State Gaming Commission (NYSGC), was the lowest month of NY sports betting handle so far, but still more than enough to cement its position as the biggest sports betting market in the United States. It is actually the biggest July in US sports betting history.
It was a record low for bets, but it was a record high for hold. The nine regulated New York sportsbooks posted $73.3 million in revenue for a hold percentage of 9.2%. Revenue was up from June’s $72.4 million despite $250 million less in handle. The state collected $37.4 million in tax revenues.
FanDuel continues to lead the pack
Here is a look at how each sportsbook did in terms of handle in July:
- FanDuel: $347.7 million
- DraftKings: $213.5 million
- Caesars Sportsbook: $118.2 million
- BetMGM: $73.2 million
- BetRivers: $20.3 million
- PointsBet: $16.5 million
- WynnBet: $6.0 million
- Resorts World: $4.7 million
- Bally Bet: $640k
FanDuel once again posted great hold, with $39 million in revenue on $347.7 million in handle for hold of 11.2%. PointsBet was the only other operator to post hold over 10%.
Bally Bet did not have the benefit of a full month of operation, having launched on July 7. The bigger issue for handle is the admitted lack of a marketing push from Bally’s. On the Q2 earnings call, CEO Lee Fenton admitted the lack of marketing spend is intentional as the company works to improve the betting product. With only $640,000 in handle, the last app to launch in the state posted $40,080 in revenue, only $19,639 of which it could keep for itself.
NY state remains the biggest winner of all
Many operators voiced frustration around the New York tax structure in the glut of Q2 earnings calls this week. Operators have generated a combined $680.4 million in revenue since launching in April. Of course, the majority of that, $347 million, has gone back to the state in taxes.
MGM and Caesars publicly stated they were pulling back spend in New York, as the cost of market acquisition combined with the high tax rate is too rich for their blood. The two books are still in the top tier of brands, while the other five operators are struggling to generate even half the handle of their competitors.