Has the initial buzz of March Madness worn off?
New York online sports betting handle dropped more than $100 million (23%) from the first week of March Madness ($428 million) to the second week ($327.8 million).
The $327.8 million in handle for the week ending March 27 represented the lowest full week total since Jan. 8 launch.
Why such a drop in online NY sports betting handle?
This could be because there are less games on which to wager and/or because promotional spend continues to decline. And it will be interesting to see how NY online sports betting operators perform as the sports calendar turns.
The NBA and NHL playoff seasons have the potential to be strong. But just MLB regular-season games in the summer could be leaner.
Overall, New York online sports betting has still been a massive boom to the state financially. From Jan. 8 through March 27, the Empire State has collected $160.4 million in tax revenue off $4.68 billion in online sports betting handle.
Breaking down NY sports betting weekly numbers
For the eighth straight week, FanDuel ($133.1 million) and DraftKings ($83 million) finished 1-2 in handle/market share.
But DraftKings (perhaps due to promotions) had a total gross gaming revenue (GGR) of just $1.9 million compared to FanDuel’s $9.5 million.
Caesars ($56.9 million in handle, $2.3 million in total GGR) and BetMGM ($36.4 million in handle, lost $433,000 in total GGR) performed similarly.
|Sportsbook||Handle||Gross Gaming Revenue|
Local policymakers have been trying to add skins, thereby decreasing the 51% tax rate. But that is unlikely to make it in before the budget deadline, making it a post-budget focus before the session ends in June.
Sportsbooks have been open about their disdain for the 51% tax rate as it relates to long-term sustainability and profitability in NY. But the state’s position has been that they knew what they were signing up for when they were granted licenses.