Handle and revenue from mobile and online sports betting in New York fell to record lows in June. A slower month was expected, with the NBA and NHL wrapping up their seasons and football still months away.
But what wasn’t expected was the $302.3 million the Empire State has generated in tax revenue in just under six months of operation. That figure far exceeds the state’s original projections and is more than either New Jersey or Pennsylvania have generated since 2018.
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NY Sports Betting Handle, Revenue Hit Record Lows in June
In just six months, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers
The handle fell to a record low of $1.1 billion in June, a 16.8% decline from May ($1.3 billion).
For the fifth consecutive month, FanDuel Sportsbook NY led its rivals with a 45% share in handle. The operator accepted $472.9 million in wagers, down 14.4% from May ($552.6 million).
Second place is DraftKings Sportsbook NY, which held about one-quarter of handle in June, accepting $270.2 million in wagers. DraftKings has maintained about the same handle every month since the market opened.
Caesars Sportsbook NY has seen its share of handle fall every month since the market opened. It started with an impressive 37.6% of handle in January, but its share has since dropped to 14.9%. After peaking at 10.5% of handle in March, BetMGM Sportsbook NY has been declining every month to 8.8% in June.
Among the smaller operators, the handle at Resorts WorldBET has been up every month since March and reached a record 0.6% in June. It was a similar pattern at WynnBET, although it peaked at 0.8% in May before slipping to 0.7% in June. Resorts WorldBET accepted $6.8 million in wagers in June, while WynnBET processed $6.9 million.
Revenue also hit a new low in June — $72.4 million. That’s down 34% from May ($109.8 million).
All eight operators saw lower revenue in June. FanDuel was the top operator for revenue at $39.6 million, down 38.1% month-over-month ($63.9 million).
FanDuel continued to lead in market share for revenue at 54.6%. DraftKings was a distant second at 22.7% but grew its market share for the second consecutive month.
NY Projects $2.3 Billion in Tax Revenue Through FY 2027
Last January, New York had projected that it would generate $249 million in tax revenue from mobile and online sports betting, including $200 million in licensing fees that have already been collected, for fiscal year (FY) 2022, which ended on June 30.
Total collections have been $361 million, including the $200 million in fees. In April, the state government in Albany projected that it would generate more than $2.3 billion in tax revenue over the next five fiscal years, specifically:
- 357 million in FY 2023
- 465 million in FY 2024
- 493 million in FY 2025
- 509 million in FY 2026
- 518 million in FY 2027
“In just six months, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers,” said New York Governor Kathy Hochul. “The recent launch of New York’s final sports wagering operator will provide key revenue for education, youth sports programs, and problem gambling support.”
Hochul was referring to Bally Bet, which launched on July 7. It was the ninth and final operator awarded a NY sports betting license in November 2021.
The Empire State has collected more tax revenue from mobile and online sports betting in six months than any other state, some of which have had open markets for years. That includes revenue from online and retail sportsbooks.
According to the Democratic governor’s office, through May 2022, Pennsylvania had collected $265.6 million in sports wagering tax revenue since November 2018, while New Jersey had generated $237.1 million since June 2018.
