The New York online sports betting market is rewriting the record books as each day goes by in the industry. In the first week’s report, four sportsbook operators were able to accept bets to begin the operation in the Empire State.
Mobile Sports Betting in New York Makes Waves in the Sports Betting Industry
According to the New York State Gaming Commission, sportsbook operators have accepted $603 million in wagers from January 8th to the 16th. Caesars, DraftKings, FanDuel, and Rush Street Interactive were the first four sportsbooks to reap the benefits.
The four online sportsbooks brought in $48.2 million in revenue for that time span. Caesars led the market with a handle of $257.6 million. FanDuel was in second place with $200.3 million in bets. DraftKings had $134.7 million, and Rush Street had the least activity with just $10.6 million.
Sportsbooks had an eight percent hold, and the Empire State has the highest state taxes on revenue in the industry which is slated at 51 percent. That translates to approximately $24.6 million.
Therefore the average daily volume in wagers placed also comes to around $67 million. New Jersey’s record-setting month in October 2021 had a handle that hit $1.3 billion. Looking at the daily average betting volume, the numbers add up to $41.9 million per day.
Neighboring state Pennsylvania had the most successful launch in the sports betting industry. The state generated $23 million in revenue for November 2021.
There is no doubt as to why Caesars had the biggest handle compared to its competitors. Caesars opened its sportsbook in the state with an up to $3,300 risk-free bet. This equates to FanDuel and DraftKings offering new customers up to $1000 in a risk-free bet. Why not learn how to bet on Draftkings with the BParlay.com guide.
DraftKings & FanDuel offering similar promotions may have hugely affected DraftKings stock. FanDuel walked away with a handle that was 50 percent larger than DraftKings. The company’s stock hit an all-time low on Friday as it closed at $19.46, and the stock has the potential to keep dropping.
The NY Sports Betting Market Will Get Larger as More Sportsbooks Get Approved
On January 17th, BetMGM accepted wagers as the app was up and running for the game between the Arizona Cardinals and the Los Angeles Rams.
CEO Adam Greenblatt stated, “Yes, delighted with how it’s gone. Look, we’ve broken all of our records. It was the best first day of any live launch, we broke records for most registrations, for most first-time depositors, for deposits, for bets, for handle.”
BetMGM’s sports betting handle should also be posted soon. With the biggest population in the sports betting industry, New York may be on its level. New Jersey’s sports betting handle has yet to take a hit as the transactions have gone up since New York joined the market.
However, it’s hard to deny that New York will eventually surpass New Jersey and claim the top spot.
Four more sportsbooks have yet to launch in the state, including Bally Bet, PointsBet, Resorts World Bet, and WynnBET. PointsBet should be on track to launch its product by the end of the month. If you are looking for some betting inspiration, take a look at the BParlay.com NBA Picks Parlays guide for more information.
It will be interesting to see WynnBet’s approach moving forward. Wynn Resort is looking to sell its app for $500 million, a huge discount compared to the previous evaluation slated at $3.2 billion through a $3.2B SPAC transaction with Austerlitz Acquisition Corp in November. Learn more about this and other similar investor presentations with The Proposed Investor publication between Wynn Interactive & Austerlitx Aquisition Corp.
WynnBet brought in Shaquille O’Neal as a brand ambassador earlier in 2021 to promote its brand, but the company has had a hard time keeping up with promotion costs to bring in customers as it costs $300-$500 for each new user.
Despite Wynn going through a difficult transition, the New York online sports betting market will continue to grow exponentially.
