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New York's online sports betting market experienced a seasonal slowdown in July, with consumer spending falling by 15.2% compared to June. Despite this dip, the market remains on an upward trajectory, as demonstrated by the year-on-year growth in both handle and revenue.
The decline in July's sports betting activity can primarily be attributed to the typical summer lull, with major U.S. sports leagues being in their off-season or operating on reduced schedules. This seasonal slowdown is reflected in the betting handle and revenue figures, which were the lowest since August 2024.
Despite the drop in betting volumes, the gross gaming revenue for July was $155.9 million, marking a 10.5-10.7% year-over-year increase. This continues a trend of double-digit growth for the state, with a consistent hold of about 11.1%—the highest summer win rates historically for New York.
Key players in the market include FanDuel, which retained the revenue lead, and DraftKings, which topped the handle. FanDuel's higher hold rate of 12.8% resulted in greater revenue despite lower wagers, while DraftKings continued leading in handle with approximately $500 million in July.
Other significant players in the New York market include Caesars, BetMGM, and Rush Street Interactive. Caesars reported $9.7 million in revenue from $97.9 million in bets in July, while Rush Street Interactive achieved a hold of 9.71% from $35 million in wagers, generating $3.4 million in revenue. BetMGM reported $10 million in revenue from $98.1 million in bets in July.
The resilience of New York's market is underpinned by several factors. New York has a large population with relatively high per capita income, especially in NYC and surrounding counties, supporting sustained high betting volumes. The regulated market structure and taxation in the state incentivize continued market growth, with the state's 51% tax on gross gaming revenue generating large tax receipts.
Mobile betting dominates the landscape, with over 90% of sports betting activity happening via mobile devices, facilitating convenience and frequent consumption. This increased accessibility likely drives spending growth. The competitive sportsbook operators and aggressive promotional strategies have also been key drivers for New York's sports betting market.
Looking ahead, if historical patterns hold, New York's betting handle could see a rapid rebound as the fall sports calendar fills up, potentially setting new monthly records in the final quarter of the year. The return of professional football is widely viewed as the single most important driver of sports betting activity in the U.S., and industry observers expect August's figures to remain relatively subdued before a likely surge in September, when the NFL season begins.
In conclusion, consumer spending on online sports betting in New York is growing year-over-year, driven by demographic factors, regulatory environment, mobile betting convenience, and seasonal sports dynamics. However, betting volumes experience typical summer softening that tempers monthly revenues. Despite the dip in July, New York's market continues to show resilience, reporting year-on-year growth in both handle and revenue. Since launching legal online sports betting in January 2022, New York has consistently ranked among the top betting markets in the United States.
Online casino offerings, such as poker, saw an increase in interest during July's sports betting slowdown, as bettors sought alternate forms of gambling. Furthermore, sports betting platforms continued to offer various promotions, incorporating poker tournaments and online casino games, to keep consumers engaged during lower sports betting seasons.
