As New York politicians continue to work through how many mobile sportsbooks will produce the most money for the state, the operators already taking bets continue to report declining revenue.
New York’s eight mobile operators reported a handle of $335.8 million and gross gaming revenue of $12.9 million for the week ending April 10. The weekly report, released by the state gaming commission on Friday, describes the second-lowest full week by handle and the lowest by GGR since New York launched legal sports betting on Jan. 8. And the lowest week by handle came in the previous week.
Three straight down weeks compared to more robust revenue from Jan. 9 through March 20 can be partially explained by fewer marquee sports betting opportunities after the Super Bowl and the start of March Madness. But it also could become salient as lawmakers and executives discuss how many operators will be offered skins in the coming months and years.
Mobile expansion shelved for now
Bills in both the State Assembly and Senate were introduced last month to expand the number of operators from nine (once BallyBet launches) to 16 by next January. More licensed operators would lower the tax rate for each one from 51% to 36% initially and continue to decline as more are added.
However, the proposals did not make it into the 2022-23 fiscal year budget approved earlier this week, in part because the state was worried about how the lower tax rate would impact its tax collection efforts.
Since launch, New York has generated $5.3 billion in handle and $342.7 million in GGR for an overall tax haul to the state of around $174.8 million. The three lowest revenue weeks for tax collectors, however, have been the past three, in line with declining revenue.
As it has matured, the New York mobile sports betting market has settled into something of an equilibrium, with FanDuel, DraftKings, and Caesars cementing the top three spots in the market and commanding more than 80% of the handle. FanDuel reported a weekly handle of $142 million and GGR of $8 million, DraftKings reported a handle of $83.5 million and GGR of $2.4 million, and Caesars reported a handle of $49.4 million and GGR of $695,000.