New York Eclipses $10 Billion In Yearly Handle

The volume of legal sports betting in New York continues to outpace projections
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New York reached a round number ahead of schedule last week, eclipsing $10 billion in annual sports betting handle.

Despite a relatively tepid seven days, with $194.5 million in handle for the week ending Aug. 28, New York bettors have risked $10.3 billion since the Jan. 8 launch of mobile sports betting, with $766.5 million in gross gaming revenue (GGR) and taxes totaling $390.9 million, according to the latest report from the state gaming commission.

Back in July, Gov. Kathy Hochul’s office projected $357 million in tax revenue for fiscal year 2023, which began April 1. That projection could prove modest. Since the week that started March 28, New York’s nine mobile sportsbooks have collected $451.9 million in GGR, yielding $230.5 million in tax revenue with seven months left in the fiscal year, including the entire NFL season.

New York’s 51% tax rate on GGR is tied with New Hampshire for the highest such rate in the nation.

High hold rates continue

Last week’s volume was a step back from four straight weeks of increasing handle, with the weekly number decreasing for the first time since the week that ended July 17. The end of summer also witnessed high hold rates for the house, with New York bettors collectively losing at a 10.1% rate in the most recent weekly report.

Three operators have seized about 80% of New York’s market share, with FanDuel (35%), DraftKings (25%) and Caesars Sportsbook (20%) dominating wagering. FanDuel continues to rake in high hold rates in the state, with a 10.5% hold last week and a 14% win rate the week before, roughly twice the national average.

The NFL season kicks off Thursday night in Los Angeles with a marquee matchup between the Rams and Bills, with a full slate of games scheduled for Sunday. Typically, the NFL generates the most betting volume among the four major U.S sports.

Image: Shutterstock

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