DraftKings Surges in New York Revenue, Threatening FanDuel's Leadership Position
In July, DraftKings gave FanDuel a run for its money, missing the top spot for mobile sports wagering revenue in New York by a mere $8,700. The Massachusetts-based sportsbook raked in just under $41.09 million, marking a 10.7% increase from June, thanks largely to a record-breaking 12.1% hold.
The week ending Aug. 6 saw DraftKings setting all-time highs for revenue ($25.1 million) and handle ($161.4 million), leading the pack among eight mobile books taking wagers. Despite this impressive performance, FanDuel narrowly edged out DraftKings with revenue of just under $41.1 million, achieved on a 10.7% hold of $384.6 million in accepted wagers.
FanDuel has maintained a double-digit win rate for five straight months, surpassing $1.1 billion in total revenue in New York since beginning mobile betting in 2022. Overall mobile handle in New York amounted to $962.1 million, marking the first time since August it dipped below $1 billion, but representing a 20.2% year-over-year improvement.
The eight active mobile operators combined for $105.1 million in adjusted gross revenue, with a 10.9% hold — the fourth-highest in 19 months for New York books. The state's four commercial retail sportsbooks contributed $380,000 in winnings.
FanDuel wasn't the only operator boasting a double-digit hold. BetMGM and Resorts World also joined the club, while heavyweights like Caesars Sportsbook and BetRivers registered holds above the industry standard of 7%. Meanwhile, WynnBET remained competitive with a 7.7% hold.
This trend of double-digit holds is indicative of an industry that's quickly leaving its "industry standard" in the dust. In just over a year since New York's mobile launch, nationwide handle and revenue benchmarks have been reached much faster than pre-PASPA times. Mobile revenue from New York alone has contributed more than 11% of the total post-PASPA era revenue at $2.3 billion.
Industry expansion is evident, aided by states like Ohio and Massachusetts joining the marketplace and improved operator performance. In the last 12 months, operators nationwide have posted a 9.4% hold on a staggering $103.9 billion handle, generating $9.8 billion in gross revenue. New York accounted for $1.7 billion of that revenue, making it the top revenue generator among all states.
FanDuel and BetMGM both achieved a double-digit hold in the sports-betting industry, joining clubs led by heavyweights like Caesars Sportsbook and BetRivers. These high holds indicate a rapidly evolving industry that's leaving its industry standard in the dust, with mobile sports wagering revenue in New York contributing significantly to the total post-PASPA era revenue, reaching over $2.3 billion within just a year.
