Online Sportsbooks in New York Set New Record in November
Since becoming approved for online sports betting at the end of last year, there has been (and still is) much excitement about the potential of this ever-growing US market in the industry.
January of this year set a high bar for revenue figures - one that had many on the fence about whether this was just a phase or if it could be the start of something. The month set a record for sports handle (funds wagered) at a figure of $1.66 billion. This is still yet to be beaten; however, November yielded interesting information.
A record-breaking GGR (Gross Gaming Revenue) number of $148.2 million is so far unprecedented.
The Figures In-Depth
Perhaps not surprisingly, it was arguably the biggest operator in the US, FanDuel, who recorded the highest figures, bringing in a state handle of $646.2 million, second only to that of the numbers in March for the state - $673m. Meanwhile, its GGR stood at $78.39 million.
DraftKings recorded a very healthy $42.33 million in GGR - a considerable improvement on where it was 10 months ago in the state, with a handle of $498 million, while Caesars sportsbook was someway behind with a GGR of $14.92 million and a handle of $200.29 million.
With a 51 percent tax rate for the industry, this is the highest in the union, and subsequently, online sportsbooks paid $75.89 million in taxes - another new record, eclipsing that of October, which stood at $74. 28 million.
What Is It about New York and Online Sports Betting?
When looking closely and reading between all of the lines, there appears to be a formulaic and logical picture being painted about the online sports betting scene in New York. Upon receiving approval last year, New York State Democratic Senator Joseph Addabbo Jr. uttered a few impactful words at the time: “This is big. Once we enter the arena, we’ll eclipse New Jersey”.
Psychic? Or simply equipped with ultra common sense? For two consecutive months, New York state has broken previous GGR records, and signs indicate that there is more to come.
Certainly, for the current online sportsbooks operating in the state, the juice is far from a long way from being squeezed dry out of the ‘Big Apple’. Numerous sports seasons are in full swing - the NFL and NBA being chief among them. Thanksgiving holiday weekend, arguably the most prominent fixture in the wider US sporting calendar (with the exception of SuperBowl weekend), would have yielded a considerable number of bettors.
Also, with the state boasting the highest average wage in the union and the highest percentage of millionaires per square mile - and by extension, those who have gambling in their blood by profession; throw a snowball anywhere on Wall Street, chances are you will come within touching distance of a hedge fund trader, broker or investment banker - odds of 2/1 that they enjoy a sports bet. Join the dots.
For years, a significant percentage of this profession have enjoyed ‘friendly bets’ between colleagues on sports fixture outcomes - now they can finally do it legitimately, perhaps with even more favorable odds. Are the figures a coincidence? It would take a betting man to argue otherwise.