New York’s Sports Betting Revenue Takes a Dip in February
February turned out to be a less fruitful month for New York’s sports wagering sector, as evidenced by the state’s noticeable dip in sports betting revenue.
The absence of a full array of football games, compounded by a significant loss during the Super Bowl week, where BetMGM reported a $9.6 million shortfall, culminated in a notable downturn. The combined revenue for the state’s nine sportsbooks marked their least profitable month since last August, raising eyebrows in the industry.
Analyzing the Downtrend
The New York Gaming Commission’s (NYGC) recent report unveiled that the sports wagering revenue for February plummeted to $131.4 million. This figure not only fell short of the $150 million mark for the first time since the onset of the football season but also marked a significant 37.9% month-over-month decrease in sports betting handle. Despite this, a year-over-year comparison reveals a 21.7% increase, hinting at underlying growth potential amidst the recent setbacks.
The win rate, or hold, stood at 7.4%, the first instance of it dropping below 9% since November of the previous year. This aligns closely with the hold percentage from February of the preceding year, indicating a possible seasonal trend. Tax revenue from sports wagering also saw a decline, dropping from $107.9 million in January to $67 million in February, reflecting the industry’s volatile nature.
Performance by Major Operators
The Super Bowl week was particularly challenging for BetMGM, which managed a mere $580,224 in gross income from a $129.7 million handle, marking its first venture into sub-million revenue territory. FanDuel and DraftKings, leading the pack, accounted for 72% of the total sports wagering handle in New York. FanDuel’s $720.1 million in accepted bets and $63.4 million in revenue, although leading, signified a downturn from their previous performances. DraftKings followed, with a $607.9 million handle and $53.4 million in revenue, showing resilience amidst the industry’s ebb and flow.
A Glimmer of Hope in March
The tail end of February and the dawn of March hinted at a potential upswing for New York’s sports betting landscape. The state reported a $456.1 million handle in the week leading up to March 3, setting a positive tone even before the commencement of March Madness. This period saw a 10.2% increase in the total wagered amount and a 7.8% rise in income to $40.1 million, showcasing the industry’s capacity for rapid recovery.
Despite a promising start to March, the recent decline in revenue, especially from top contenders like FanDuel and DraftKings, paints a complex picture of the New York sports betting scene. Caesars and BetMGM also witnessed fluctuating fortunes, with their revenues not aligning with the high handles recorded.
Our Comment on the Article
The recent dip in New York’s sports wagering revenue is a stark reminder of the industry’s susceptibility to seasonal fluctuations and event-specific outcomes. While the downturn in February is noteworthy, the early signs of recovery in March offer a silver lining. The resilience of major operators amidst these challenges underscores the dynamic nature of the sports betting industry.
As we move forward, it will be crucial to monitor how these platforms adapt to changing trends and leverage upcoming sporting events to recoup losses and bolster their financial standings. The ebb and flow in revenue figures not only reflect the operational challenges but also highlight the inherent opportunities for growth and innovation within the sector.
