In January, New York State will celebrate its first full calendar year, since the launch of its mobile sports betting market for private operators. And over the last several months, the sector saw a clear leader emerge in the face of FanDuel Sportsbook. Since the start of the local market, the sports betting giant has handled nearly half of the total wagered volume.
Back in January, the Empire State kick-started its online sports betting market, which allows for a total of nine sportsbooks to operate legally in it. Besides FanDuel, there other eight operators are DraftKings, Caesars Sportsbook, BetMGM, BetRivers, PointsBet, WynnBET,Bally Bet and Resorts World Bet. The state has also put a tax rate of 51%, which is the highest in the country.
No Signs of Slowing Down
It is not even a year into the mobile sports betting market, and FanDuel has already established itself as the top mobile sportsbook in the Empire State. According to the latest reports from the New York State Gaming Commission, since the launch, the market has generated a total wagering handle of US$12.97 billion and US$1.06 billion in gross gaming revenue.
Since the start, FanDuel has generated a total betting handle of US$5.2 billion, which is almost half of the total market value. Its betting volume has translated into US$501 million in revenue. Meanwhile, DraftKings has collected US$3.49 in handle and over US$265 million in revenue. Caesars Sportsbook got US$2.3 billion in handle and US$183 million in GGR.
All three sportsbooks went live on the market on the first day. In terms of revenue, so far, FanDuel has claimed an impressive 47.2% of the state’s legal mobile sports betting market. Here DraftKings is again second with a market share of 25% and Caesars Sportsbook is third with 17.3%. This leaves a modest market share of 10.5% to be divided between the rest: BetMGM, WynnBET, Bally Bet, PointsBet, BetRivers, and Resorts World Bet.
FanDuel’s dominance in the Empire State has been mainly due to its hold or loss rate for gamblers of 9.6% since its market launch. Meanwhile, DraftKings has a hold rate of 7.6%, while Caesars Sportsbook has one of 8%. The other six operators have an average of 8.6%. To put it into perspective the average nationwide hold rate is usually 7.2%.
iGaming is Definitely on the Cards
After the major success of online sports betting, New York lawmakers are also pushing for the legalization of interactive gambling in the state. Sen. Joe Addabbo has vowed that he will put the introduction of online casino gambling as his number one priority for the fiscal 2023-2024 budget. If passed, the new market would allow local bettors to play casino games via their phones.
Provided that iGaming becomes a reality in New York State, it would be highly beneficial for the state’s coffers, found a study. A while back, a report from VIXIO GGamblingCompliance estimated that the Empire State could be bringing around US$428 million every year from online casino operations. There are even expectations that it would easily overtake mobile sports betting.
Source: Saxon, Mark “FanDuel In Dominant Position In NY Market” SportsHandle, November 4, 2022N
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