When the New York mobile sports betting came to fruition, the state had one goal in mind. To meet the goal, the Empire State exceeded the projections, and it is safe to say that it did more than the state was asked to accomplish.
In the Empire States, online sports betting has become second nature as it seized the top spot in three separate categories; monthly handle, operator revenue, and state revenue tax receipts. The generated revenue funds educational programs, youth sports, and other lesser-known categories.
On Monday, the New York State Gaming Commission released the full mobile revenue numbers for December, with handle surpassing $1.6 billion for the third consecutive month. Mobile sportsbooks registered a total of approximately $1.63 billion in December, which is third behind January’s $1.67 billion and March’s $1.64 billion.
Technically, the market isn’t even a year old yet, as the biggest launch in the industry’s history began on January 8th. Regardless of one perceives the numbers, the overall handle has accumulated $16.2 billion in wagers.
During the full calendar year, New York’s volume ranks fifth in the post-PASPA era, just behind Illinois by less than a half billion dollars. In addition, the revenue numbers continue to add to the history as the state eclipsed the $140 million revenue mark for the fourth consecutive month.
The neighboring state, New Jersey, didn’t take much of a hit during the beginning months of the operation. However, the Garden’s State monthly handles are starting to lose ground on the all-time ranks, as residents in the Empire State no longer need to cross state lines to place wagers throughout the year other than in-state collegiate events.
In December, mobile wagering generated $72.3 million in tax receipts, bringing the year’s total to more than $692.8 million. This is more than the annual estimated $500 million in tax receipts projections.
FanDuel Remains King of the Empire State
FanDuel has registered an overall handle of $6.5 billion for the year and over 40 percent of the state’s market share. The bookmaker has collected $650.6 million so far and continues to maintain a hold rate of 10 percent or higher for the majority of the time.
FanDuel’s biggest rival, DraftKings, has secured the second position by accumulating over $4.5 billion in wagers and $354.6 million. The average win rate for the platform is 7.8 percent, which is slightly above the national average of 7.2 percent. The closest DraftKings got to matching FanDuel was with 30 percent of the market share in September through December.
Caesars was the only other sportsbook operator with a $600 million monthly handle but achieved that feat during the launch month. Caesars offered the biggest promotion in the history of the industry that month.
BetMGM rounded out the “Big 4” as they started a week after the “Big 3” in January. In the year’s final months, BetMGM saw a significant increase in activity, as the fourth quarter is the busiest time of the year.
The platform accepted over $100 million in each of the last three months to close out the year ($1.3 billion in wagers overall.) PointsBet and BetRivers continue to fight for the fifth spot to round out the list.
Will Any Major Changes Be Discussed During the Legislative Session
As we enter 2023, it will be interesting to see how the slots from five to nine will play out as market share has been tough to acquire outside the “Big Four.” Additionally, lawmakers will also be convening for a legislative session soon.
It seems unlikely that the 51 percent tax rate will stay put as any sudden changes could potentially impact the funding for various programs. However, an iGaming market and more options to wager throughout the year will certainly be a part of the conversation.