Better retention has helped New York’s mobile sports betting market increase year-over-year revenue, despite footfall falling to its lowest total in the current fiscal year.
New York has the lowest betting activity
Sports betting spending in New York totaled $1.26 billion (£988.8 million/€1.16 billion) in July, according to figures from the New York State Gaming Commission.
This represents an increase of 31.2% compared to August 2023, but 14.3% behind the US$1.47 billion bet in June. It is the smallest monthly movement since US$1.11 billion was staked in August 2023.
But July is traditionally one of the quietest months for sports in the US, with MLB being the only league in action. This year, however, the last week of July benefited from the start of the Olympic Games, while the US hosted football’s Copa América in the first half of the month, contributing to year-on-year growth.
Thus, revenue growth is due to stronger retention. Revenue reached US$140.3 million, an increase of 33.5% compared to the previous year and 4.8% compared to the previous month.
In other words, across all operators, retention improved to 11.1%, compared to 9.1% in June 2024.
FanDuel continues to dominate sports betting in the state
Among the state’s licensed operators, Flutter Entertainment’s FanDuel remains the best in New York. In July, FanDuel reported $59.3 million in revenue from $482.5 million in total bets, a 12.3% retention that exceeds the market average.
DraftKings remains in second place with a turnover of $456.7 million, thanks to a 10.5% retention of $48 million in revenue. The group of persecutors is becoming more and more united.
Caesars customers bet $108.6 million in July, generating revenue of $10.8 million. Fanatics’ 11.7% stake saw it overtake BetMGM in terms of revenue, generating $8.9 million of $76.1 million in bets.
The Entain-MGM Resorts joint venture recorded US$89.2 million in turnover, but a worse share of 9.7% meant revenue of US$8.8 million.
The only other operator to generate more than $1 million in revenue was Rush Street Interactive, with $35.4 million wagered on $35.4 million in revenue.
The GGR (Gross Gaming Revenue) tax is 51% for sports betting in New York. Thus, operators were left with just US$68.8 million of the US$140.3 million in revenue in July. The remaining $71.6 million was allocated to funding education in the state.
ESPN Bet close to launching sports betting in New York
While Wynn Interactive recorded US$51,222 in revenue from a turnover of US$936,926. But later this month, it will be replaced by Penn Entertainment’s ESPN Bet. The company acquired Wynn’s New York sports betting license in February.
Last Thursday (08), during Penn’s second quarter earnings conference, CEO Jay Snowden spoke about ESPN Bet’s prospects in the state.
“There is an average of 10 million monthly visitors to ESPN media sites and apps in New York State. This allows for a “healthy but cost-effective” approach to customer acquisition.”
Penn is banking on a successful launch in New York amid investor concerns. The market share of ESPN Bet and the cost of competing with established sports betting giants will be called into question.
