Sportsbooks in New York posted record numbers in May of $249.3 million in revenue, surpassing the previous record of $248 million from January this year.
New York sports betting operators accepted $2.21 billion in wagers in May, marking the fourth consecutive month with a handle above $2 billion. Revenue was boosted by the Knicks losing out to the Pacers in the Eastern Conference finals, contributing over $127 million in revenue in the final two weeks.
This contributed to a hold rate of 11.3% for sportsbooks, the highest of any month since legalization. January had a rate of 10%, but all other months were in single figures this year, with the rate down at 6.6% in March. The rate in 2024 was at 9%, slightly up on 8.8% in 2023 and 8.4% in 2022.
Last year in May, revenue was at $203.3 million, making this year an 11.7% increase year-on-year. Betting handle was just below $2 billion last year at $1.97 billion.
The betting handle of $2.21 billion in the third highest in US history, trailing behind January’s high of $2.48 billion and March’s $2.44 billion.
FanDuel leading the battle with DraftKings
The final week of May saw FanDuel generate $26.44 million, topping the list of sportsbooks. DraftKings came in second at $21.47 million, which far exceeded the rest of the pack. Caesars, BetMGM, and Fanatics were a long way back at around $3 million.
Figures for the whole month of May have not been published by individual betting companies, but based on the numbers in the final week of May, we expect FanDuel exceeded $100 million in revenue for the month. DraftKings was likely not far behind that with the other companies making up the rest of the $249.3 million.
Sportsbooks have to pay back 51% of their revenue figures in taxes in New York. which has the highest levy in the country at 51%. With other states looking to increase tax revenue, they may look to New York as the example which shows a high tax rate does not discourage bettors.
New York clamping down on unregulated markets
As regulated sports betting surges in the Empier State, lawmakers have been making moves to safeguard the industry. Attorney General Letitia James announced that her office has stopped online sweepstakes casinos operating in New York.
A list of 26 platforms that have been issued cease-and-desist letters was published in a press release from James’ office. The list includes VGW-operated Chumba Casino, Luckyland Slots, and Global Poker. The operator had already announced its withdrawal from the New York market last month.
Additionally, High 5 Casino is also listed, with the operator confirming to customers in April that it would no longer be offering New York players the chance to play on its platform.
The mass exodus comes as lawmakers push for a bill to criminalize sweepstakes operators. Last year, it is estimated that New York online casinos generated over $4 billion in revenue, more than double that of regulated sports betting companies.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
