New York’s mobile sports betting revenue experienced a surge of 15.4 percent from February, reaching a total of $151.7 million in March 2024. This increase failed to match the revenue generated in March 2023, resulting in a 6.8 percent year-on-year decline from $162.8 million.
In February, the total amount wagered in New York’s betting market reached $1.87 billion, a 20.4 percent increase from the same month in 2023.
However, the figure was 9.7 percent lower than January’s total of $1.96 billion and the lowest monthly amount since September 2023’s $1.76 billion.
This report was produced in cooperation with Vlad Lazurchenko, a product manager at JackpotSounds.com, a reputable US gambling and betting-related media, providing valuable insights and analysis on the New York sports betting market.
Reasons for New York Betting Revenue Decline
The sports betting market in New York has experienced significant growth since its launch, with over $16 billion in wagers and $700 million in tax revenue generated in its first year alone.
Overall, the success of New York’s sports betting market is at risk due to the high tax rate, which could lead to a decrease in revenue, education funds, and competition, as well as an increase in problem gambling.
New York’s Sports Betting Revenue Dips in the Absence of Football
The absence of a full football schedule in New York led to a decline in revenue for the state’s sportsbooks. The Empire State’s nine sportsbooks reported their lowest monthly revenue since August 2023, with a combined total of $131.4 million in February.
Lower Handle and Win Rate in New York’s Sports Betting Market
The $1.8 billion handle in February marked the lowest figure since September 2023, representing a 37.9 percent decrease from the previous month. However, the figure was up 21.7 percent year-on-year in a market that had previously seen four consecutive months of handles over $1.9 billion.
The 7.4 percent hold was the first win rate below 9 percent since November 2023, but it was consistent with the hold produced in February 2023. New York’s tax revenue also decreased from $107.9 million in January to $67 million in February.
Impact of Super Bowl Week on New York’s Sports Betting Market
The decline in revenue was further compounded by BetMGM’s $9.6 million loss on the Super Bowl, which saw a lower handle and win rate compared to previous months.
Improved Sports Betting Handle in New York Despite Revenue Dip
Despite the decline in revenue, the sports betting handle in New York improved both month-on-month and year-on-year. The figure rose 4.3 percent from February and was up 3.5 percent from March 2023, reaching a total of $1.85 billion.
DraftKings Follows Behind FanDuel in New York’s Sports Betting Market
DraftKings followed closely behind FanDuel, with revenue of $48.8 million from a handle of $612.2 million.
BetMGM
BetMGM saw a nearly $3 million increase in handle from the previous week, but revenue plummeted by over $2 million to $1.5 million.
WynnBet
WynnBet made around $60,000 on a handle of $1.5 million, while BallyBet profited just $297 on a handle of nearly $124,000.
High Handles and Low Revenue in New York’s Sports Betting Market
The trend of high handles and low revenue was consistent across most sportsbooks in NYC, suggesting a potential disconnect between the volume of bets and the revenue generated from them.
Impact Over Taxes in NY
The recent monthly results follow a study published last month that revealed New York’s significant contribution to the total tax revenue generated from sports betting in the US.
The study found that sports betting generated national tax and gross receipts of just under $506 million in Q3, representing a 20.5 percent increase from Q3 2022 but a decline from $571.5 million in Q2 2023.
NYC dominated the tax revenue generated via sports betting, with a total of $188.5 million, nearly five times higher than Indiana’s $38.6 million in second place.
Ohio and Illinois followed closely behind in third and fourth place, with $32.9 million and $32.4 million, respectively. Pennsylvania rounded out the top five with $28.8 million.
Empire State Sportsbooks Rebound Possible?
Following a challenging start to March Madness where the hold dropped to 5.8%, New York’s eight online sports betting operators experienced a turnaround in the second week, achieving a win rate of 9.2% by the week ending March 31.
Revenue surged by 34.4% compared to the previous period, reaching $41.9 million, marking the highest revenue recorded since early February.
While New York did not maintain consecutive weeks of over $500 million in wagers, the New York Gaming Commission reported a weekly handle of $456.4 million, a 15.4% decrease from the previous week, despite the inclusion of MLB’s opening weekend.
Wrapping Up
The absence of a full football schedule, high tax rates, and a potential disconnect between the volume of bets and revenue generated are all factors that could impact the long-term success of the market.
However, the sports betting market in New York remains a significant contributor to the state’s revenue, with a strong potential for growth in the coming months.
