Casino News

New York Reports 35% Drop in Weekly Wagering Proceeds

New York’s mobile sports betting market experienced another peculiar week of wagering. For the week ending on October 22, 2023, the eight online sportsbooks recorded an improved betting handle from the previous week. However, operators were not able to maintain the record-breaking numbers from the prior week and saw a 35% drop in gaming proceeds.

The Empire State’s market for digital sports wagers is almost two years old as it first commenced operations on January 8, 2022. It allows for nine virtual sportsbooks to offer and accept legal wagers on various sporting events. Currently, eight operators are up and running as during the summer Bally Bet went offline to incorporate new technology.

Unable to Maintain Numbers from Record-Setting Week

After the record-breaking week in terms of gross gaming revenue since the launch of the market, New York’s online bookmakers saw revenue drop from US$62 million to US$40.2 million for the week ending on October 22, 2023. As per New York State Gaming Commission reports, the drop of 35% came from a hold that decreased from a state high of 15.3% to 8.7%.

The return of the football season helped the state’s market recover after a cooldown of betting volume during the off-season. This latest week’s total wagering volume was up 15% from the previous week to US$464 million. It was the sixth time in seven weeks that bets have exceeded US$400 million. It was also a 27% in volume in comparison to the same week in 2022.

Needless to say, FanDuel was again the leader for the week of October 22, as it generated a state-record handle of US$198.7 million, smashing the previous record set by DraftKings of US$196.1 million, and reporting a revenue of US$20.5 million. Meanwhile, DraftKings recorded total betting activity of US$146 million and pre-tax gaming proceeds of US$15.2 million.

However, it should be mentioned that despite most operators having a relatively solid week, two operators closed the week in the red. BetRivers was one of them, as it clocked a US$1.6 million loss from a handle of US$42 million, which was the third-highest for the week. The other sportsbook was WynnBET which lost US$115,000 from handling over US$3 million in bets.

Online Sports Betting Comes with a Downside

Despite the successful start of the mobile sports wagering market, it was reported that there has been a surge of residents who have joined voluntary self-exclusion programs. It was found by the New York State Gaming Commission and the Office of Addiction Services and Supports, and it was revealed that there was a 33% increase in exclusion requests in the first 12 months after launch.

In the past, experts such as Jeffrey Wierzbicki, team leader of the Western Problem Gambling Resource Center in Buffalo, have also expressed concerns regarding the popularity of digital sports betting. A while back Mr. Wierzbicki elaborated more people have sought help after the introduction of the market, and many of these people are young individuals.