The New York sports betting market is among the largest in the country and it’s all thanks to two gaming operators that are carrying the load for the entire state.
Since online NY sports betting launched in January 2022, $22.7 billion in sports wagers have been placed. This has resulted in $1.9 billion in revenue for operators, and $978 million in taxes for the state.
While New York policymakers are certainly happy with New York gaming operators and how much money they’re raking in, FanDuel Sportsbook and DraftKings Sportsbook are the ones making the lion’s share of the money.
And it’s not particularly close.
FanDuel, DraftKings NY sports betting dominance by the numbers
The last time New Yorkers witnessed a duo as powerful as FanDuel Sportsbook NY and DraftKings Sportsbook NY was Derek Jeter and Alex Rodriguez in the Bronx. But even they don’t hold a candle to the dominance of FanDuel and DraftKings in the NY industry.
For proof, look no further than the New York State Gaming Commission’s April revenue figures. FanDuel led the way in:
- Handle: $626.2 million
- Gross gaming revenue: $70.9 million
- Tax revenue: $33.1 million
In second place was DraftKings, posting these numbers:
- Handle: $516.4 million
- Gross gaming revenue: $44.9 million
- Tax revenue: $22.9 million
If you add up the totals from FanDuel and DraftKings and compare them to the numbers from the other seven New York sportsbooks, the big two blow the competition out of the water.
In April, FD and DK had about $738.3 million more in accepted wagers, roughly $92.9 million more in gross gaming revenue and approximately $47.5 million more in tax revenue.
Why are FanDuel and DraftKings so far ahead of other NY sportsbooks?
A big reason for FanDuel and DraftKings’ boom in New York compared to its rivals is thanks to a feeling of familiarity and comfort that comes from signing up with them. People like using brands and companies they’re used to, and those two sportsbooks check that box thanks to the 2010s daily fantasy sports boom.
FanDuel was created in 2009, and two years later, the company received major funding that allowed for even more growth. DraftKings was born in 2012 and originally served as a one-on-one baseball wagering competition. Major League Baseball invested in DK in 2013, and that’s when the company took off.
Offering both a sportsbook and daily fantasy sports on the same platform is also a major leg up on the competition. If you enjoy doing both, it makes the most sense to do them with the same mobile app.
FanDuel and DraftKings also offer two of the most seamless experiences when using their apps. Rarely, if ever, do the apps glitch or freeze. Then once you’re on FanDuel or DraftKings, they offer equal to or more betting markets than any other New York sportsbook.
Making more money than competing sports betting companies allows FD and DK to spend more on marketing and advertising. With ads flashing in front of New Yorkers when they watch TV, scroll social media or listen to a podcast, it makes sense that FanDuel and DraftKings are industry leaders.
DraftKings is the Robin to FanDuel’s Batman
When taking a big picture look at the New York sports betting market, FanDuel and DraftKings are the clear leaders of the pack. But taking a closer look shows there’s also a sizable gap between FD and DK.
In DraftKings’ Q1 earnings call earlier this month, DK co-founder and CEO Jason Robins was asked about the company’s plan to catch up to FanDuel. Robins said having a successful rival in FanDuel provides motivation for DraftKings and its employees.
“No doubt having a big competitor in FanDuel is also helpful,” Robins said. “It gives us somebody on the OSB side to feel like we can chase down.”
All told, when looking at the entirety of online NY sports betting revenue, FanDuel has accepted nearly $2.5 billion more in wagers than DraftKings. FD has also accumulated $411.6 million more in gross gaming revenue, and contributed almost $211 million more in taxes.
This is mainly thanks to FanDuel’s parent company Flutter Entertainment. Flutter is an international sports betting company, and oversees some of the world’s largest and most popular gambling brands.
Receiving backing from a powerhouse like Flutter has helped FanDuel stay profitable in the NY market, which of course helps the company to continue its success. Meanwhile, DraftKings is still fighting to become profitable in New York.