Sports betting in New York crosses six-month mark with competition still ongoing

The New York sports betting market is celebrating its six-month anniversary, with some investors wondering if all the new competitors will succeed despite the state’s high tax rate and increased pressure on consumers with discretionary spending.

Hirurg

Only that month, Bally’s Corporation (NYSE: BALY) broke into sports betting in New York with Bally Bet now living in the Empire State. Confirmation came last week that sports betting was available for download in New York and sports betting could be done. Bally Bet is the ninth live sports betting in New York after the official launch of online sports betting in January.

Market watch: New York’s online sports betting handful exceeded $8.6 billion through the end of June. Market leaders in order are Flutter Entertainment’s FanDuel (OTCPK:PDYPY), DraftKings (DKNG), Caesars Interactive (CZR), BetMGM (MGM) (OTCPK:GMVHF), PointsBet (OTCQX:PBTHF) and BetRivers (RSI ). FanDuel led in June with 55% market share in the iGaming and online sports betting market and 45% of the handful. DraftKings (DKNG) grabbed 23% market share and 26% of the handle.

While a seasonal summer downturn is typical for sports betting, New York hadn’t seen a weekly handle above $300 million since the week ending May 8. Promotional activity would also be down, which could lead to an overall decline in sports betting management in 2022 compared to initial forecasts.

In New Jersey, sports betting totals held up better than expected after the launch in New York, although a high level of promotions have reduced the win rate in recent months for the main Meadowlands operators (FanDuel, PointsBet and Superbook USA) Resorts Digital, and MGM’s Bet Borgata.

Analysts have circled DraftKings’ (DKNG) second-quarter earnings report as a potential event for the sector. DKNG is expected to release numbers and update its total addressable market forecast in the first two weeks of August.

Martin E. Berry