New York’s total handle from online sports betting in July was $962.1 million. The state continues to be on pace to surpass record-setting 2022 for wagers accepted, revenue and tax revenue.
July was the first time in 11 months that the state’s total handle did not top $1 billion. Handle is the total amount of wagers placed by customers with online sports betting apps in New York. Typically, July and August are slower revenue months for sports betting operators.
Still, New York had the highest total handle of any state in the US for July.
Sportsbooks in NY must be very happy. Revenue is over $920 million so far in 2023, a 29.6% increase from the first seven months of 2022. Because New York taxes online sports betting revenue at 51%, the state has collected $469.3 million so far this year. That figure represents the largest tax windfall for any jurisdiction with legal online sports betting.
FanDuel narrowly beats DraftKings in July revenue
There are a total of eight New York online sports betting apps currently available to bettors. Bally Bet has paused operations but expects to relaunch in the fall. Fanatics could begin operations in New York soon.
In June, DraftKings NY pulled off a coup by slipping ahead of rival FanDuel NY in total handle from sports betting online. FanDuel, however, re-emerged as the top sportsbook in The Empire State in July. It took in $384.5 million in wagers for the month. The competition for gross revenue was tight. FanDuel NY eked out the top position by less than $10,000, coming in at $41,095,057, compared to $41,086,402 for DraftKings NY.
FanDuel NY and DraftKings NY are the clear leaders in the lucrative New York online sports betting market. In July, the two combined for 75% of the total bets placed via sportsbook apps or sports betting sites. Only Caesars NY also reached at least $100 million in total handle, with $111,094,537 for July.
Sports betting operators paid $53,617,482 in taxes on $105,132,318 in combined revenue in New York for July. Notably, WynnBET suffered a poor month, reporting just $517,872 in revenue on $6.7 million in total handle, or less than 2% of the total taken in by leading FanDuel NY.
Both BetMGM Sportsbook NY and PointsBet Sportsbook NY had their lowest total handle months since New York launched online sports betting in January 2022. The future of PointsBet is in doubt. Earlier this year, it was acquired by Fanatics, which has not yet announced its plans for a sportsbook in New York.
Total wagers for 2023 from online sports betting exceeds $10 billion
Growth is the key indicator of a healthy market, and the NY online sports betting business is a good one to be in. In the first seven months of 2022, New York had $9.3 billion in wagers placed via mobile or online sports betting. In 2023, that figure is $10.1 billion. September sports betting is bound to surge when the NFL and college football seasons begin. It’s possible New York could reach $20 billion in 2023. Last year, that figure was $16.2 billion.
All that activity and excitement over sports betting online has been a boon to New York and kept the money counters in Albany busy. Through the end of July, the state has gathered in 469.3 million in tax revenue, a 30.3% increase from the same period in 2022. Last year, New York received $693 million in taxes from online sports betting. In 2023, it’s not unrealistic to think that number could go as high as $800 million, or even higher.
What does ESPN Bet mean for future of NY sports betting?
News this month that PENN Entertainment is jettisoning Barstool Sportsbook and plans to replace that brand with ESPN Bet have sent shockwaves through the sports betting industry. PENN has announced that ESPN Bet will be available in states where Barstool is licensed as soon as Thanksgiving.
Currently, PENN does not have a sportsbook license in New York. If it does secure a license for ESPN Bet, that product could have the chops to challenge FanDuel and DraftKings in New York. At some point in 2023 or early 2024, it’s also possible that Fanatics Sportsbook may enter the New York market.
Though, the high cost of doing business in the state (the application fee is $25 million; revenue taxed at 51%) could give pause to sportsbooks, even major ones like Fanatics.
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