New York sports betting revenue increased by more than $10m between April and May despite a drop in total handle, as operators enjoyed a stronger hold rate throughout last month.
Operators in the Empire State, according to data from the New York State Gaming Commission, handled $1.36bn in bets during May, down 12% from the $1.54bn handled in April. However, this was up 7.9% year-over-year as New Yorkers continue to enjoy the legalization of sports betting.
The spring months mark a downturn in sporting activity, which will go some way in explaining the slump in handle between March and May.
Nevertheless, operators enjoyed a very strong hold rate of 11.2% during May, meaning that revenue actually increased from April despite that monthly slump in handle.
This meant operators made $151.9m in revenue, up 9.4% from the previous month, when total turnover slumped below $140m in a rare low.
In another display of strong annual growth for the most lucrative US market, operators’ revenue grew 38.3% YoY from May 2022’s intake of $109.8m. The strong hold rate means that May 2023 was just the second month that New York sports betting revenue spiked over $150m, after the record-breaking month in March.
Breaking down handle per operator, FanDuel was once again the top performer in New York, taking $561.4m in bets last month. Perennial competitor DraftKings was again in a strong second place, handling $471.1m in May, but remains some way off the Flutter brand.
Here is a look at the remaining operators handle last month:
Caesars: $162.9m
BetMGM: $93.8m
Rush Street Interactive: $35.9m
PointsBet: $19.1m
Wynn: $7.9m
Resorts World: $4.3m
Bally Bet: $2.2m
The ranking was also identical for the breakdown of operators by revenue too. FanDuel was the big winner, generating $75.9m in revenue, around 50% of all the money made in New York in May.
DraftKings was again in second place, generating $47.7m in revenue last month, with Caesars in third, making $13.9m.
Here is a look at the other players’ revenue total:
BetMGM: $8.9m
Rush Street Interactive: $3.2m
PointsBet: $1.2m
Wynn: $461k
Resort World: $417k
Bally Bet: $173k
Taking into consideration the 51% tax rate on sports betting that is imposed in New York, and operators netted $74.5m during April, meanwhile, they spent $77.5m in taxes to fund local education requirements.
