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.
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.