New York Sees Revenue Drop for Sports Betting in February

The New York State Gaming Commission released its report for February, revealing insights into the state’s sports betting landscape. Despite the buzz surrounding Super Bowl 58, New York experienced a decline in online sports betting handle compared to the previous month. 

February’s handle amounted to $1.77 billion, marking a 9.7% decrease from January’s figure of $1.96 billion. However, it was still a substantial 20.4% increase from the same month in 2023, showcasing the ongoing growth of the New York sports betting market.

Monthly Handle Dips While Annual Revenue Climbs

Adjusted gross sports betting revenue for February stood at $131.4 million, reflecting a 37.9% decrease from January’s record-setting revenue of $211.5 million. Nonetheless, it represented a noteworthy 21.3% increase from February 2023, painting a positive picture of the overall health and resilience of the market. 

The decline in revenue from January to February can be attributed to varied outcomes for operators during Super Bowl 58, which saw the Kansas City Chiefs secure an overtime victory over the San Francisco 49ers.

Among the operators, FanDuel emerged as the top performer in February, reporting $63.4 million in revenue from $720.1 million in handle. This marked FanDuel’s fifth consecutive month with over 40% of the state’s mobile handle, although it was the lowest market share percentage in that streak. 

DraftKings closely followed, generating $53.4 million in revenue from $607.9 million in handle. The Super Bowl resulted in substantial losses for BetMGM and Caesars, with losses of $4.8 million and $970,000, respectively. Despite this, DraftKings accounted for 40% of the monthly mobile revenue for the first time since entering the Empire State.

In addition to the established operators, new players entered the New York market, including Fanatics, which launched its sportsbook on March 1. Fanatics reported $2.9 million in revenue from $82.9 million in bets for February. Its launch marked another phase of Fanatics’ acquisition of PointsBet, signaling the brand’s commitment to expanding its presence in the lucrative New York market.

Looking at the broader landscape of sports betting app revenue in the US, New York is a significant contributor, accounting for over 37% of the total tax revenue generated from sports betting nationwide. The region’s tax revenue amounted to $188.5 million, significantly higher than any other state in the country. 

State Posts Sharp Decline After Record-Breaking January

New York’s online sports betting market set a consecutive record in revenue for January, marking a 12.3% increase from the previous record set in December 2023. The impressive revenue figure was also a significant 41.6% jump compared to January of the previous year, highlighting the substantial year-over-year growth in the market.

FanDuel continued to dominate the market, securing a significant portion of the record revenue with a remarkable $109.2 million in online betting revenue. This marked a historic milestone for FanDuel as it became the first operator to surpass the $100 million mark in monthly revenue. The operator processed $867.1 million in wagers during the month.

DraftKings also delivered impressive results, securing the second position with $71.0 million in revenue, its highest monthly total to date. The operator recorded $663.8 million in online bets.

Other operators in New York, including Caesars, BetMGM, and Rush Street Interactive (BetRivers), also contributed to the market’s robust performance in January. Despite trailing behind FanDuel and DraftKings, these operators collectively generated substantial revenue.

However, while the online sports betting market in New York continues to thrive, the prospect of online gaming faced setbacks in January. Governor Kathy Hochul’s exclusion of online gaming from the 2025 executive budget dealt a blow to the hopes of expanding gaming offerings in the state. 

Despite efforts by state senator Joseph Addabbo to introduce revised legislation to legalize online gaming, the future of online gaming in New York remains uncertain. Senate Bill S8185, which includes provisions for online gaming and lottery, awaits further deliberation in the New York Senate, leaving the fate of online gaming in the state hanging in the balance.

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