New York Near $2 Billion In Mobile Betting In Less Than Five Full Weeks

FanDuel shows staying power as it tops mobile handle for second straight week
New York February 2022 Week 1
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Though the pace of mobile wagering has slowed considerably in New York since its highly successful launch last month, operators in the Empire State continued to roll up handle and revenue numbers at a considerable clip through the first four-plus weeks of wagering.

The New York State Gaming Commission released numbers that dovetail with Gov. Kathy Hochul’s statement Monday regarding the overall totals, which are now just shy of $2 billion handle and more than $138.5 million in gross gaming revenue. The 51% tax rate on that revenue has resulted in more than $70.6 million in receipts for the state.

By way of comparison, neighboring New Jersey, which generated the most revenue in the nation last year with $816 million, collected $102 million in annual taxes. Meanwhile, Pennsylvania, which previously had the nation’s highest tax rate at 34%, generated $115.6 million from $340.1 million in adjusted gross revenue in 2021.

“Over the past month, we’ve seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more,” Hochul said. “As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all.”

Taxes generated from sports wagering in New York go toward elementary and secondary education; grants for youth sports programming; property tax relief; and problem gambling prevention, treatment, and recovery services.

FanDuel showing most staying power

The overall mobile handle of $359.8 million for the most recent week reported was the lowest of the full four weeks of wagering in New York and represented a week-over-week decline of nearly 20%.

The mobile operator that showed the most resilience was FanDuel, as it claimed more than one-third of that weekly total with nearly $130.3 million in wagers spanning Jan. 31-Feb. 6. It is the lone operator of the seven in action to have cleared $100 million in all four full weeks and has accepted more than $632 million in wagers to date.

While Caesars made the biggest initial splash with its monstrous introductory offers, maintaining that pace has proven challenging. It still claimed nearly one-quarter of the handle with close to $87.2 million, but finished $100,707 behind DraftKings for second in that category. Caesars still leads in overall handle with close to $702.7 million since launch, but FanDuel has taken $56.7 million more in action than Caesars’ $215.3 million in the past fortnight.

The trio accounted for nearly 95% of the $25.5 million in gross revenue for the week, as the collective mobile win rate was 7.1%. Caesars did take top honors there with close to $8.8 million, thanks to a 10.1% hold, while DraftKings ran a close second at just under $8.7 million, with a win rate barely missing 10%. FanDuel claimed the final podium spot for revenue with more than $6.6 million, as its 5.1% hold was a slight uptick from its overall 4.8% mark.

Bettors fared the best versus BetMGM, which took just $443,110 from nearly $34.3 million handle for a 1.3% win rate. It was the second time in its three weeks of action that BetMGM posted a sub-2% win rate, though it did clear $100 million in cumulative handle since its Jan. 17 launch.

PointsBet took a double blow as its handle tumbled nearly 60% to $12.2 million from its initial week of action, while its hold plummeted more than 6 percentage points to 1.5%. The Aussie-based sportsbook finished with $186,059 in revenue, the lowest among the six operators that had a full week of wagering.

BetRivers finished fourth in revenue for the week with $762,243, despite placing sixth in handle with $8.4 million. It was a revenue swing of nearly $1.1 million to the good from the previous week, when it paid out nearly $400,000 more on $10.2 million worth of wagers.

WynnBET, which was the seventh operator to begin taking bets with its Feb. 4 launch, reported a weekend handle of $251,355 and revenue totaling $33,656 for its debut, posting a 13.4% hold that was tops among all operators for the week. Its introductory promotion for bettors is $200 in free bets upon registration with a minimum $10 deposit.

Photo: Shutterstock

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