New York sports betting market hits six-month mark with competition still rolling in

New York sports betting market hits six-month anniversary with some investors questioning if all the new competitors will make it amid the high tax rate in the state and more pressure on consumers with discretionary spending.

Hirurg

Just this month, Bally's Corporation (NYSE:BALY) broke into sports betting in New York with Bally Bet now live in the Empire State. Confirmation came in last week the sportsbook was available for download in New York and sports betting wagers could be made. Bally Bet is the ninth live sportsbook in New York following the official online sports betting launch in January.

Market watch: The New York online sports betting handle was over $8.6B through the end of June. The market leaders in order are Flutter Entertainment's (OTCPK:PDYPY) FanDuel, DraftKings (DKNG), Caesars Interactive (CZR), BetMGM (MGM) (OTCPK:GMVHF), PointsBet (OTCQX:PBTHF), and BetRivers (RSI). FanDuel dominated in June with 55% of the market share in the iGaming and online sportsbook market and 45% of the handle. DraftKings (DKNG) nabbed 23% market share and 26% of the handle.

While a seasonal summer slowdown is typical with sports betting action, New York had not seen a weekly handle above $300M since the week ending May 8th. Promotional activity is also reported to be down, which could lead to the overall 2022 sports betting handle coming in lower than originally anticipated.

In New Jersey, sports betting handle totals have held up better than anticipated following the New York launch, although a high level of promotions lowered the win rate in recent months for main operators Meadowlands (FanDuel, PointsBet, and Superbook USA) Resorts Digital, and Bet MGM's Borgata.

Analysts have circled the DraftKings (DKNG) Q2 earnings report as a potential sector-rattling event. DKNG is expected to spill numbers and update on its total addressable market forecast sometime during the first two weeks of August.

Comments

[User 56698574]

www.youtube.com/... I talk about draft kings here if you guys want to check it out. Lately nobody is really talking about it and I see it as best investment in this environment and should have amazing quarters going forward.

[Yorick]

So Maxwell in Australia offers to buy the company for $175M or 1/3rd current market cap unless I am mixing up my currencies which is significant as the Aussie $ is only 67% of the US $. regardless it was for less than the current valuation...all these companies seem to have a real issue with customer acquisition costs/marketing costs and desperately need consolidation down to 4 or so national players. Now that Macau seems permanently damaged, seems that Wynn or Lvs better get moving

[mendo]

What is difference between handle and market share?

[Bricks0]

@mendo Handle is the total amount of money wagered. Market share is each operator's handle as a percentage of the total handle.

In the above article's context, when they're talking about FanDuel and DraftKings, handle and market share are being used interchangeably.

[ProfessorSmatt]

DraftKings is the best one I’ve seen so far! They can possibly get bought out if the price is right. It’s definitely worth $60-100+

[rowenco]

@ProfessorSmatt
In my opinion it's really probably worth $6 - 10 a share. You're using too many zeros.
DraftsKings reminds me a lot of PLTR. Has never made a penny in profit, and corporate exec's grant themselves millions of free shares and options every 3 months which means there will probably always be constant and permanent dilution.
And look where PLTR is at......

[willien]

@ProfessorSmatt ain’t that cute Prof!!!