New York April: $1.4bn mobile sports betting... but just $51m revenue after tax
New York’s online sportsbooks slowed to less than $1.4bn in wagers this April. Despite still representing a mammoth figure, this is the lowest recorded figure since New York launched online sports betting in January.
The $1.4bn handle was down 15% from March, and below the $1.5bn gathered in February.
Online sportsbooks averaged $46.4m in wagers per day for April, down from $52.8m in bets per day for March.
Gross revenue was also down 9%, with sportsbooks winning a total of $104.1m. Of these winnings, $53.1m was taken in tax revenue – over half of the total takings for April.
This is a staggering tax figure and highlights the incredibly high tax rate in New York’s newly regulated market. Equally, the remaining $51m does not account for heavy bonusing and marketing costs.
FanDuel accounted for 43% of the online market share, taking $599.5m in bets, down from $673.1m in March.
This handle produced $63.6m in gross revenue, up on second-placed DraftKings, which won $19.6m on bets placed with the operator.
DraftKings took $327.1m in wagers, equivalent to 24% of the month’s online volume.
PlayNZ analysts believe the focus of the sports betting market in New York will now shift, given the NFL is in the off-season.
Golf and baseball look set to be the sports given a marketing push, especially with data suggesting both tend to be more profitable per dollar bet for sportsbooks.
Online gaming market analyst Eric Ramsey commented on the latest figures: “After an interesting first few months, New York’s industry is settling into a familiar pattern, with FanDuel and DraftKings dominating the sports betting market.
“FanDuel, in particular, continues to invest heavily in its home state and that effort is paying off with a market share north of 40%.”