The conclusion of the NFL season means that it is time for New York’s mobile sports betting volume to decrease. Numbers posted by the New York State Gaming Commission confirm that the weekly betting handle has dropped significantly after Super Bowl LVII. For the week of February 19, 2023, the state reported almost US$100 million less in volume.
The Empire State’s online market for sports wagering debuted last January and allows for a total of nine digital sportsbooks to legally operate in it and conduct mobile betting. For its first year of operations, the market brought in over US$700 million in tax revenue from wagers as well as US$200 million in licensing fees from operators to the state’s budget.
NFL Off-Season Marks Drop in Volume
On Thursday, February 23, 2023, the New York State Gaming Commission, which oversees the market, released its weekly update on the market’s numbers. For the week ending on February 19, 2023, the nine sportsbooks collectively contributed to a total handle of US$339.6 million. This amount is significantly lower than the Super Bowl week’s volume of US$424.3 million.
However, the lack of major events allowed operators to increase their gross gaming revenue numbers. For the week of February 19, 2023, sportsbooks reported a total GGR of US$23 million. This was a major improvement on the previous week’s US$12 million. Meanwhile, operators’ hold spiked to 6.8% from the 2.8% win rate from the prior week.
It should be mentioned that despite the drop-off in betting volume by New Yorkers, there were no changes in the operators’ standings, as FanDuel was still the preferred choice. The Empire State-based sports wagering operator collected the largest amount of wagers on its platform with US$137 million in volume, which translated to US$11.3 million in pre-tax earnings.
In the meantime, DraftKings which has been the second most popular app in the state remained at its customary second spot. The digital sportsbook generated US$110.8 million in wagers and US$7.4 million in revenue. At third was Caesars Sportsbook which took in over US$44.6 million in betting activity and just US$1.4 million in gross gaming proceeds.
Potential Adjustments to the Sector
New York State’s mobile sports betting market has been a major success, but local lawmakers still wish to see some adjustments. In January democrats Luis R. Sepúlveda and Leroy Comrie presented Bill S1550. If passed the legislation would direct all gaming ads in the state to include warnings about the possible negative effect of gambling.
However, according to the New York Council on Problem Gambling, the mobile sports betting market comes with a concerning downside. The organization has previously reported that more and more young adults from the state have sought help regarding their compulsive gambling habits. It also described the demographic of 18 to 24-year-olds, as pathological gamblers.
Source: Zochodne, Geoff “Sports Betting Shrinks in New York Post-Super Bowl” Covers, February 23, 2023