New York: Record handle dampened by low hold

December 8, 2023 3:55 PM
Photo: Shutterstock
  • David McKee, CDC Gaming Reports
December 8, 2023 3:55 PM
  • David McKee, CDC Gaming Reports

Bettors flooded New York State’s online sports books with wagers in November. However, a low hold, 7.2 percent, dimmed the outcome. Handle (wagers placed) was $2.1 billion for the month, a leap of 36 percent month over month. However, revenue rose only two percent, to $150.9 million.

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According to J.P. Morgan analyst Joseph Greff, FanDuel and DraftKings exceeded their prior betting high-water marks by four percent and three percent respectively, with DraftKings improving 12 percent from October. FanDuel booked $925 million in bets, while DraftKings followed with $732 million.

The amounts fed back into the market by operators in the form of promotions were not disclosed. BallyBet, which generated $4 million in handle, was an outlier, having only resumed taking wagers on November 16, following a refit with Kambi-owned software.

In terms of handle, other operators of note were Caesars Sports Book ($205 million), BetMGM ($121 million), BetRivers ($77 million), Fanatics ($27 million), WynnBet ($11 million), and Resorts World ($7 million).

When boiled down to actual revenue realized, WynnBet lost money and BallyBet squeaked by with $200,000. The leader was FanDuel with $69.2 million. DraftKings was second with $54.3 million, then Caesars ($11.6 million), BetMGM ($7.9 million), BetRivers ($5 million), Fanatics ($2.4 million), and Resorts World ($500,000). All operator winnings are taxed by the state of New York at 51 percent.

FanDuel lost four percentage points of market share (to 46 percent), but not to DraftKings, which was flat at 36 percent. Caesars ceded two points (to eight percent), while BetMGM held steady at market share of five percent.