New York City recorded the highest online sports betting GGR for the month of September since its inception in January 2022. The total recorded GGR for the month was 143.33 million. This ultimately led to higher margins (and lower bonuses) resulting in $1.25 billion against January’s $1.7 billion.
With July and August being the quietest months of the season, industry experts expect a big resurgence in the United States of America in September, with no NBA and NFL action playing for the Raiders. Similarly, in New York City where online gaming is illegal (but considered), there is no cross-selling product to absorb the reduction handle during the quiet months.
What was the market share?
FanDuel (Flutter) remains the clear market leader in New York, accounting for 46 percent of the state’s total gaming revenue at US$65.69m in September. Second and third at 31% and 13%, respectively, were DraftKings and Caesars Entertainment, the only other operators that accounted for more than 10% of the state’s online revenue in September.
Followed by BetMGM 5,99% GGR, Rush Street 1,86%, PointsBet 1,21% at Wynn (0,48%), Resorts World Betting (0,28%) and the recently launched BallyBet (0,1%). Although FanDuel achieved a 46% GGR with a 40% handle, these figures are reflected in the broader catch statistics. In contrast, DraftKings posted a 34% handle, showing poorer margins/bonuses than the NYC market leader at 31% of revenue.
With NYC’s particularly aggressive tax rate of 51% GRR, the state continues to benefit from a highly competitive market with some of the largest figures in the US. Returns to the state are comfortably the highest, although the numbers from months ago are on the decline. Promotional activity in the big Apple remains healthy, but with the operator being ‘thin’ due to taxes, it will be interesting to see how long it lasts. A short hop through New Jersey was always an option before legal action in NYC, surprisingly some of the big brands are so well known.
Operators will be keeping an eye on the potential of legalizing online gaming in the coming years as it will be a huge market. The question is, if the tax on sports betting is 51%, how much higher can it be on iGaming?
