Nearly $2.5 billion was wagered on sports in New York during January to set a new all-time high as a bill to allow certain bet types is passing through the Senate.
With just two months left of the fiscal year, the total reported handle for mobile sports betting in the Empire State was up nearly 8.77% on December. New York’s legal sportsbooks retained $274 million in revenue from bets made after winnings were paid out.
By the end of January, the state was only $0.3 billion below the total handle figure for April 1 to March 31 2023/24. Another annual wagering record when 24/25 closes is a sure thing with figures for February and March to follow.
As New York’s sports betting product is set to expand further, once the amendment to existing legislation is fully passed by the house and signed off by Governor Huchul, financial year 2025/26 could be bigger yet.
Wager types set to be legalized in New York by the bill sponsored by Senator Joseph P Addabbo Jr include those on awards and season-long props. The bill was passed by the Senate Finance Committee on February 11.
When it’s fully ratified, bets on awards and honors for player and team performance throughout a season will be allowed. This could include wagering on who will be named the NFL’s MVP and which player will be awarded the Heisman Trophy.
Previously such bets have not been allowed to avoid pressure or outside influence on individuals, particularly those in college sports. Other bets that will be permitted include pre-game coin tosses, a popular option elsewhere in the US, particularly for the Super Bowl.
The biggest change will take longer though. That would be to allow licensed operators in the state to run online casino games and poker. It remains to be seen just when iGaming will launch legally in New York
Pressure to allow online casino games such as slots may build again with some stagnation noted in brick-and-mortar casino performance in New York with January traditionally the toughest month of the year for the hospitality sector, the Empire State’s 21 commercial land-based casinos record an overall net loss in the first month of the year.
New York State also has a projected budget deficit of $6 billion for the upcoming fiscal year which could sway legislature thinking further. Mobile sports betting contributed about $1 billion in tax receipts for the state last year, with the bulk set to education.
While sports betting is expected to continue growing in New York, at some point the market will become saturated with expansion opportunities contracting. Online casino revenue is one antidote to that. Existing licensed brick-and-mortar casinos plus online sportsbooks in the state will be the ones likely to be offered that chance.
The possibility of new licenses for sports betting operators also continues to be mooted. The top sportsbook operators in the Empire State will be keen to consolidate and pursue fresh avenues ahead of any expansion in license numbers having reflected on a high point to open this calendar year. That’s as New York marks three years since launching its regulated sports betting market.
FanDuel again led the way in January’s bumper numbers. The Flutter brand closed out the month with a handle of $965.1 million, ahead of DraftKings on $837.9 million. BetMGM placed third with $194.8 million, just edging Fanatics on $194.1 million. Caesars took $163.2 million in bets.
ESPN Bet had its best month for handle since launching in late 2023 with $59.2 million. The bottom three for handle were made up of Bet Rivers ($48.2 million), Bally Bet ($10.3 million), and Resorts World Bet ($7.9 million).
New York’s sportsbooks had ended 2024 with a healthy win rate for bettors hitting their bottom line. The combined Gross Gaming Revenue (GGR) in December was $150.4 million with an overall hold rate of just 6.6%.
Normal service was resumed in January though with a total GGR of $247 million resulting in an improved hold ratio of 9.95% compared to the month prior.
For completeness, here is the breakdown of GGR and hold percentage by NY sportsbook. Note FanDuel’s continuing dominance in dollar retention after winnings are paid out. Conversely, ESPN Bet’s hold rate was notably low.
FanDuel | $111.3 million | 11.53% |
DraftKings | $82.0 million | 9.79% |
Caesars | $15.8 million | 9.68% |
BetMGM | $14.8 million | 7.60% |
Fanatics | $15.1 million | 7.78% |
BetRivers | $3.9 million | 8.09% |
ESPN Bet | $2.4 million | 4.05% |
Bally Bet | $1.0 million | 9.71% |
Resorts World | $683,618 | 8.66% |
With January behind us and New York setting yet another record for sports betting, the impact of Super Bowl weekend wagering activity could yet see another big month for the state’s betting operators come the end of February.
