New York online sportsbook breaks $1 billion for four straight months
May 5, 2022
The sports betting industry in New York has continued to grow during its first four months. For the week ending April 24, the state's online sportsbooks took in over $334.5 million, bringing the total to $1.1 billion. It marks the fourth straight month that the industry has exceeded $1 billion mark.
Since the industry's launch on January 8, New York's online sports betting operators have brought in over $6 billion. They have also generated over $400 million in gross gaming revenue.
In April, the leading online sportsbook in New York, FanDuel, maintained its position as the state's largest player with a 43.4 percent market share. It also collected over $21 million in GGR.
DraftKings New York was also able to maintain its second position in the market with a 23.4 percent share. Over the past two weeks, the state's online sportsbooks have collected over $68 million in GGR.
Despite the steady performance of the industry, April's handle might have been the lowest total since the start of the sports betting industry in New York.
Slow sports calendar awaits
The slow performance of the industry has kept the handle under $400 million for the past five weeks. Despite the sluggish performance of the industry, there are still plenty of sports to bet on. However, promotional spending has decreased significantly.
New York's online sports betting operators won't be getting a tax reduction this year. However, the expansion of the industry could lead to a reduction in the tax rate.
Joe Addabbo and Gary Pretlow, the state's two Senate Democrats, are pushing for the inclusion of more sports betting options in the state. Currently, New York residents can't bet on the outcome of the NFL Draft or on any MVP awards.
The state's sports betting industry started with four operators: Caesars, DraftKings, Rush Street Interactive, and FanDuel. Five additional platforms have also received approval from the state to take bets. According to data provider, GeoComply Solutions, New York residents have already created over 1.2 million accounts across the various platforms.
The high handle in New York is attributed to the various incentives offered by the operators, such as free money and exclusive offers. For instance, Caesars is currently offering a massive bonus of up to $3,000 to new customers. These promotional offers aim to increase the number of people who sign up and become part of New York's growing sports betting industry.
According to a study conducted by Deloitte, the three leading online sports betting operators — BetMGM, FanDuel, and DraftKings — are in a frenzy to acquire new customers as they anticipate the number of states that will allow sports betting to increase.
Kyle Christensen, the chief marketing officer of PointsBet, noted that the company decided to expand its operations in New York due to the industry's growing popularity.
According to Christensen, the company was confident that the state's sports betting industry would be able to attract a wide range of customers. He also noted that the operators have seen promising trends.
"We were confident that New York state would offer a huge opportunity to reach an active and engaged segment of bettors," Christensen said. "We saw the patterns and we knew the appetite was there. The numbers have been exciting to watch."
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