New York’s sports betting industry has witnessed a remarkable surge in recent years, with substantial increases in both handle and revenue. Since the legalization of online sports betting in January 2022, the market has experienced significant growth, driven by key players like FanDuel, DraftKings, and Caesars.
Overview of Growth:
In full-year 2023, New York’s sports betting handle reached $19.64 billion, marking a notable 19.8% increase compared to the previous year. Gross gaming revenue also surged by 20.6%, reflecting the robust performance of the market.
Market Leaders:
Among the key players, FanDuel, owned by Flutter Entertainment, emerged as the market leader, generating $8.10 billion in online wagers and $845.8 million in revenue. DraftKings followed closely behind with $619.6 million in revenue from $7.02 billion in bets. Caesars recorded revenue of $140.4 million, with a handle of $2.03 billion. Other significant players included BetMGM, Rush Street Interactive (RSI), Fanatics, Resorts World, Wynn Interactive, and BallyBet.
Recent Performance:
In March 2024, New York’s sports betting handle witnessed a further increase to $1.85 billion, up 3.4% year-on-year and 4.5% from February 2024. Despite a slight decline in revenue compared to the previous year, the market remained robust, with FanDuel continuing to dominate with $73.1 million in revenue and $781.2 million in handle. DraftKings, Caesars, BetMGM, Fanatics, and Rush Street Interactive also maintained their positions in the market.
Future Outlook:
Despite the promising growth trajectory, certain challenges lie ahead for New York’s sports betting market. The announcement by the New York State Gaming Commission regarding the delay in naming successful applicants for new land-based casino licenses until late 2025 presents a potential hurdle. The lengthy approvals process, including zoning law alterations and environmental reviews, could prolong the process for potential casino operators. However, with continued regulatory clarity and industry innovation, the New York sports betting market is poised for sustained growth in the coming years.
New York’s sports betting industry has emerged as a dynamic and rapidly growing market, driven by increasing consumer demand and technological advancements. With leading operators like FanDuel and DraftKings setting the pace, the market is experiencing unprecedented levels of handle and revenue. While regulatory challenges remain, the future outlook for New York’s sports betting market remains optimistic, signaling continued growth and expansion in the years to come.