New York Sports Betting Experiences Second Straight Month of Declines in February

The conclusion of the NFL season resulted in a anticipated decrease in legal sports betting activity in New York during February, leading to declines for several top sports betting apps.

In the Empire State, Super Bowl betting reached record levels, but New York sports betting apps and retail providers experienced their lowest revenue month since August and the lowest sports betting activity since September in February.

In February, New York sportsbooks saw a 38% decrease in revenue compared to the record-breaking profits achieved in January, as reported by the New York Gaming Commission.

Despite this, New York sports betting continued to see seven consecutive months of $1 billion handles, including three months with $2 billion hauls.

$1.8 billion handle for February

In February, New York sports betting sites and retail providers collectively received $1.8 billion in wagers, marking the lowest legal sports betting activity in the state since September’s $1.77 billion.

The number shows a decrease of 9.5% from the $1.965 billion in January, but a significant increase of 20.7% compared to the $1.47 billion in February 2023. Despite the drop from January, residents are still benefiting from various New York sportsbook promotions.

It comes as no surprise that the majority of New York’s February betting handle came from sports betting apps. Out of the total $1.8 billion handle, $1.77 billion was generated by the top betting sites in New York.

Mixed revenue totals for February

In February, revenue figures for New York’s sportsbooks showed a mixed performance. While profits were lower compared to the record levels in January, they were still significantly improved year-over-year. Nevertheless, they hit their lowest totals since the start of the NFL season in September.

The Super Bowl in February caused significant financial losses for several sportsbooks during the month.

New York sportsbooks reported adjusted gross sports betting revenue of $131.4 million in February, showing a 21.1% increase from the previous year’s total of $108.3 million. However, this figure represents a 38% decrease from the record-setting $211.7 million reported in January.

New York sportsbooks only had a 7.4% hold rate for February.

New York sportsbooks generated $67 million in adjusted gross revenue in February, resulting in $67 million in tax contributions from state providers. This is a decrease from the nearly $107.9 million reported in January, but an increase from the $55.2 million recorded in February 2023.

In the first two months of 2024, New York state has seen a $43 million increase in revenue from its legal sports betting industry, with a total of $174.9 million flowing into state tax coffers.

FanDuel still tops, but DraftKings closing the gap

In February, FanDuel emerged as the leading sports betting app in New York, capturing 40.6% of the state’s total online betting activity. During the month, FanDuel received a total of $720.1 million in wagers.

Despite having the lowest market share percentage in the last five months, February marked FanDuel’s fifth consecutive month with a market share of 40% or more in the Empire State.

In February, FanDuel New York generated $63.4 million in revenues, with an 8.8% handle that was slightly below expectations.

In the New York market, DraftKings came in second place with $607.7 million in accepted wagers in February. The company saw profits of $53.4 million, thanks to a hold slightly above 8.8%.

In February, FanDuel and DraftKings collectively held a 72% share of the sports betting market in New York.

Caesars’ New York location ranked third in February for total handle with $162.2 million in wagers.

BetMGM New York ranked fourth in handle at $129.7 million in accepted wagers, but saw a decrease in revenue due to losses caused by the Super Bowl. The sports betting provider reported a state-record $9.6 million loss for Super Bowl week, resulting in a monthly revenue of only $580,000. This equates to a 0.4% hold, marking an all-time low for any sportsbook in the New York market.