After torrid first three months, New York’s online sports betting industry enters seasonal slowdown with $1.4 billion in April wagers, according to PlayNY
(LAS VEGAS) — New York’s online sportsbooks slowed to fewer than $1.4 billion wagers in April, the lowest volume since New York launched online sports betting in January. A slowdown is expected in April, the first in a seasonal ebb in sports betting that should last until football season begins, according to analysts from PlayNY.com, which tracks developments in the New York gaming market.
“Without football or the opening rounds of the NCAA Tournament to spur interest, April is always the first month of a slower period for the industry,” said Mike Mazzeo, lead analyst for PlayNY.com. “The NBA Playoffs were the main catalyst in April, though the early exit by the Brooklyn Nets didn’t help. And the Final Four was a boost. Over the next few months, baseball, major tournament golf, and the Stanley Cup Playoffs will keep bettors engaged, even if at a lower volume than during football season.”
New York online sportsbooks accepted $1.4 billion in wagers in April, down 15.2% from $1.6 billion in March, according to official data released Monday by the New York State Gaming Commission. That is the lowest handle yet for sportsbooks, slipping below the $1.5 billion in wagers gathered in February.
Online sportsbooks averaged $46.4 million in wagers per day over the course of April, down from $52.8 million in bets per day in March. Retail data was not immediately available from the state on Monday.
Sportsbooks still won $104.1 million in gross revenue from April’s bets, down just 8.9% from the $114.3 million in gross revenue won in March. The month’s win yielded $53.1 million in tax revenue.
After more than three months of expansion, sportsbooks’ focus will now shift. While football generates significant volume and an opportunity to expand to new customers, sports like golf and baseball tend to be more profitable per dollar bet for sportsbooks.
“Sportsbooks tend to be more aggressive with promotions during football season, as they try to expand their customer footprint,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayNY.com.
“The summer months do offer a chance to reach new customers with a different roster of sports. But the industry as a whole will taper some of its promotional spending. And the longer odds of summer favorites like baseball parlay betting and golf tournaments are profitable despite not drawing nearly as much interest as a weekend of football.”
FanDuel accounted for 43% of the online market lead with $599.1 million in bets, which was down from $673.1 million in March. Those bets produced $63.6 million in gross revenue.
DraftKings was second with $327.1 million in wagers, or 24% of the month’s online volume, down from $414.5 million in March. The operator won $19.6 million of those bets, down from $22.9 million in March.
Caesars was third with $215.7 million in wagers, down from $273.4 million in March. Gross revenue slipped to $11.8 million from $21.6 million in March.
“After an interesting first few months, New York’s industry is settling into a familiar pattern with FanDuel and DraftKings dominating the sports betting market,” Ramsey said. “FanDuel, in particular, continues to invest heavily in its home state, and that effort is paying off with a market share north of 40 percent.”
For more news and analysis on the New York gaming market, visit www.PlayNY.com/news.
Contact: Zack Hall, Catena Media, [email protected]