One shining moment for New York: A slight increase in online sports betting handle as the NCAA Tournament concluded.
During the week ending April 10, which included the national championship game, NY online sportsbooks combined for $335.8 million in total bets. That was up from $312.1 million and $327.8 million the previous two weeks.
But the $12.9 million in total gross gaming revenue (GGR) generated by online sports betting in New York represented the lowest weekly total since Jan. 8 launch.
Breaking down NY online sportsbooks for week of April 10
FanDuel dominates the competition, with a 42.3% market share April 4-10 based on $142 million in handle.
|Online Sportsbook||Handle||Gross Gaming Revenue|
|FanDuel Sportsbook NY||$142,036,677||$7,956,295|
|DraftKings Sportsbook NY||$83,517,552||$2,444,567|
|Caesars Sportsbook NY||$49,359,984||$694,637|
|BetMGM Sportsbook NY||$36,251,500||$1,202,925|
|PointsBet Sportsbook NY||$12,564,239||($23,150)|
|BetRivers Sportsbook NY||$9,254,761||$413,504|
|Wynn Sportsbook NY||$1,889,788||$180,857|
Caesars, which continues to come in third behind FanDuel and DraftKings, is hiring a GM for its digital NY sportsbook.
The listing reads, in part: “The role is centered on rapid growth, continual improvement, and the highest quality customer experience. … You will be responsible for defining the path to winning New York …”
Thrilling national championship provides bump from downward trend
Kansas rallied from a 15-point halftime deficit to defeat North Carolina 72-69 on April 4. The Tar Heels did cover the point spread, which fluctuated between 4 and 4.5 points.
For the week ending March 20, NY online sports betting handle totaled $428 million before dropping to $327.8 million and $312.1 million over the following two weeks.
It’s possible that the decline came from a combination of lesser promotional spend by operators and lesser games to bet on as the tournament field dwindled.
Locally, there was no team to get behind — not that you could bet any NY college team anyway due to state regulations that prohibit such a wager.
State enjoying byproduct of NY sports betting tax rate
Overall, from Jan. 8 through April 10, NY online sportsbooks have combined for $5.3 billion in handle, leading to $342.7 million in total GGR and $174.8 million in tax revenue for the state (at the 51% rate).
Assemb. Gary Pretlow and Sen. Joe Addabbo attempted to increase the number of operators from nine to 16 over the next two years— which would’ve lowered the 51% tax rate to 35% and then 25% based on the matrix created by the NYS Gaming Commission during the license bidding process.
But their bill failed to gain any traction during budget negotiations. And Pretlow said that’s not going to change before the conclusion of the state legislative session on June 2.
“That won’t happen this year,” Pretlow said. “I don’t see that happening in a month.”
The budget department, Pretlow said, would’ve agreed to an expansion but only if the 51% tax rate was kept in place.
“You’re not going to attract anyone at 51%,” Pretlow said.
While operators have already complained about the 51% tax rate, the state has raked in record tax revenue from online sports betting and therefore has no reason to change the controversial rate.
Dog days of summer await NY sports betting
The sports calendar now heads into full MLB mode, with the NBA and NHL playoffs giving New Yorkers plenty of markets to bet on. The state has gone over the $1 billion mark in online sports betting handle in the first three months since legalization.
But it wouldn’t be surprising if those massive numbers seen early on don’t return — or at least come close to returning — until NY has its first full NFL season since becoming a legal online sports betting state.
Pretlow also said he’s willing to look at eventually changing state regulations that prohibit NY bettors from wagering in markets like individual player award futures that require a vote.
“I’m looking to at least have available to New Yorkers what’s available to New Jersey (bettors),” Pretlow said.
Both New York and New Jersey bettors are prohibited from wagering on in-state college teams.