New York December’s Online Sports Betting Revenue Reflects Mixed Market Trends

New York experienced fluctuating fortunes in December, with a modest hold percentage of 6.6% significantly impacting overall revenue. Although the total amount wagered increased by 12% year-over-year, revenue fell sharply by 20% compared to December 2023.

The industry’s total handle approached $2.3 billion, generating $150.4 million in winnings for operators. FanDuel maintained its strong market presence, even as DraftKings faced notable declines in both handle and revenue.

FanDuel Defends Market Share Amid Revenue Decline

FanDuel emerged as the top performer, recording $926 million in bets, an 11% increase from the previous December. Despite this growth, its revenue slipped 25% to $70.6 million, with a hold percentage of 7.6%, suring the market average.

DraftKings, on the other hand, reported a 5% decline in handle, totaling $732 million. This translated to a sharp 29% revenue drop, with earnings of $46.5 million and a 6.4% hold percentage.

BetMGM demonstrated significant year-over-year growth, with its handle increasing by 41% to $178 million. This translated into $9.6 million in revenue, marking an 18% improvement. Conversely, Caesars Sportsbook faced challenges, with its handle falling 22% to $158 million, leading to a steep 45% decline in revenue to $8.7 million.

Both operators posted below-average hold percentages, with Caesars at 5.5% and BetMGM at 5.4%.

Fanatics recorded the most significant year-over-year growth, with a 500% increase in handle to $172 million. Its revenue reached $9.8 million, outpacing both BetMGM and Caesars. In contrast, Resorts World experienced a 35% decrease in handle, with $7 million wagered and $500,000 in revenue.

BetRivers and ESPN Bet reported smaller volumes, with $46 million and $49 million wagered, respectively. Revenue results were mixed, as BetRivers earned $2.9 million while ESPN Bet managed just $1.3 million despite higher handle.

Competitive Dynamics Persist

December’s results highlight the shifting dynamics within the online sports betting industry. While FanDuel defended its leading market share and Fanatics demonstrated rapid growth, established operators like DraftKings and Caesars faced considerable challenges. As operators continue to vie for market dominance, revenue fluctuations underscore the complexities of the competitive landscape.

Source:

”Low hold scuttles New York’s December sports betting revenue”, cdcgaming.com, January 12, 2025.