DraftKings defies downward New York sports betting trend
Among the five publicly traded operators of online sports betting in New York State, only DraftKings experienced more revenue in February. FanDuel, BetMGM, Caesars Sportsbook and theScore Bet all suffered declines.
The downward trend came in spite of a 5.7% increase in handle to more than US$2 billion. Aggregate revenues of US$177.5 million were 4% lower.
BetMGM saw the most significant increase in handle, jumping 35.8% to US$176.9 million in wagers taken. But its winnings plunged 64.4% to US$4.2 million.
DraftKings realized 18.7% more win, or US$61.3 million, despite a 1.7% dip in handle, to US$705.3 million. Main competitor FanDuel led DraftKings in revenue, with US$80.1 million, but saw winnings decline 13.5%. Its handle dip was almost identical to DraftKings’: 1.6% to US$726.8 million.
Caesars Sportsbook booked revenue of US$9 million, a 9.6% drop-off. Its handle was US$137 million, a 6.5% gain.
TheScore Bet, successor to ESPN Bet, saw winnings slimmed 17.7% to US$3.2 million under the new brand. Its handle, though, was up 10.3% to US$47.7 million.
All other operators combined realized aggregate winnings of US$19.7 million, a 32.1% jump. Their handle was 35% higher or US$293.7 million.
Average hold for the month was 8.5%. FanDuel, heavily reliant on parlay wagers, held the most tightly at 11%. BetMGM was loosest at 2.4%.
DraftKings held at a near-average 8.7%. Caesars Sportsbook kept 6.6% of monies wagered and theScore Bet 6.7%.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
How a hot start turned uneven fast
New York’s mobile sportsbooks entered 2025 at a sprint, then hit choppier footing by February. The state set a high-water mark to open the year, only to see a revenue slowdown the following month despite more betting volume. That divergence sets the backdrop for DraftKings’ outperformance against a broader soft patch and helps explain why hold strategy, product mix and timing around tentpole events matter as much as raw handle.
In February, New York’s total handle rose 5.7% to more than $2 billion, yet aggregate revenue slipped 4% to $177.5 million. Operators’ win rates told the story. FanDuel, which leans heavily on higher-margin parlays, held 11%, while BetMGM’s hold fell to 2.4%, sending its winnings down 64.4% even as handle jumped 35.8%. DraftKings, which held near the market average at 8.7%, grew revenue 18.7% to $61.3 million on a small dip in handle. That spread underscores how even modest changes in hold can outweigh swings in betting volume month to month.
The mixed February outcome also followed a historic January that elevated expectations and widened the base from which comparisons would be drawn, sharpening the contrast when margins tightened.
Record highs set the stage
January was a milestone. New York logged a single-month record $2.48 billion in handle and $247 million in gross gaming revenue, its fifth straight month above $2 billion. The state’s 51% tax on sportsbook GGR funneled $149 million to the education fund that month, according to the New York State Gaming Commission. Regulators also signaled vigilance over gray-market competition by discussing “serious concerns” about sweepstakes-style operators at a late January meeting, a step meant to preserve the regulated market’s momentum and tax base. Read more on the record month and regulatory posture in New York sports betting hits $2.48 billion record in January.
The surge created a wide runway into the first quarter, but it also heightened sensitivity to margin variability as football season wound down and betting mix shifted. With Super Bowl tailwinds fading and college basketball ramping up, February became a hinge month where product strategy and parlay reliance either mitigated or magnified volatility.
March reshuffles the leaderboard
March delivered a further twist: DraftKings overtook FanDuel on New York revenue for the first time in 15 months, aided by March Madness. Overall handle jumped 32% to $2.4 billion, but average hold eased to 6.6%, a retreat from February’s 8.5% as bettors gravitated to moneylines and spreads in a crowded college hoops slate. DraftKings narrowly led in handle share, 37.4% to FanDuel’s 35.3%, and posted $62.6 million in revenue to FanDuel’s $59.5 million. The reordering at the top highlighted how seasonal betting patterns can compress parlay margins and reward operators that balance promotional spend, risk control and market depth across pregame and in-play. For the full breakdown, see March Madness lifts DraftKings past FanDuel in New York.
Second-tier operators experienced whiplash in both months. BetMGM’s February handle jump did not translate to revenue, while in March it rebounded with an 40.9% revenue increase to $11 million. Caesars saw a 37.9% drop in March revenue to $8.5 million after modest February hold, reflecting the knife-edge that promotions and pricing must walk when competition tightens and bettors concentrate around marquee events.
Albany’s policy crosscurrents
Even as sportsbooks jockey for share, the regulatory and legislative currents in Albany could reset the opportunity set. State Sen. Joseph Addabbo has introduced his third online casino bill in as many years, S2614, to legalize slots, table games and poker, authorize live dealer games and allow online lottery ticket sales. The proposal would license up to 20 platforms, tax igaming GGR at 30.5% and, by some estimates, generate about $1.5 billion annually in taxes. The governor has not included igaming in the 2026 executive budget, keeping the effort on a separate track and leaving timing uncertain. Still, if enacted, online casino could alter customer acquisition economics for sportsbooks by expanding cross-sell potential and smoothing seasonality. Details are in New York senator introduces third online casino bill in three years.
Operators would need to calibrate marketing and product investment to a new tax and compliance framework in igaming while maintaining sportsbook margins under the existing 51% GGR tax. The mix shift could also influence hold dynamics as parlays compete with higher-frequency casino play for wallet share, changing how companies prioritize retention tools and bonusing strategies across verticals.
Closing gray-market gaps
Addabbo has also targeted sweepstakes casinos, introducing Senate Bill S5935 to explicitly ban dual-currency sweepstakes that simulate casino games and sports wagering. He framed the measure as a consumer-protection move and a way to stop unregulated operators from siphoning revenue from licensed platforms. The effort dovetails with the commission’s earlier warnings about sweepstakes sites and suggests a tightening perimeter around gray-market competitors. More on the proposal is in New York Senator proposes sweepstakes ban; the commission’s broader concerns are documented in the January record report.
A crackdown would likely bolster the regulated market’s tax receipts and could marginally improve operator hold by reducing arbitrage between legal books and free-to-play or sweepstakes options that convert to cash prizes. It may also push more recreational bettors into licensed ecosystems ahead of any igaming launch, strengthening loyalty loops that favor scale players.
Wall Street’s parallel bet on market structure
Outside the sportsbook lanes, financial firms are moving into event contracts and prediction markets that mirror some pricing and liquidity dynamics of sports betting. Jump Trading has begun making markets on Kalshi’s sports event contracts and previously staffed a Betfair trading team. The firm has also backed exchange-style betting models via investments in platforms like Sporttrade. The trend reflects a belief that market-making, tighter spreads and exchange liquidity can improve price discovery and user experience in event wagering. See Financial trading firm Jump Trading hops onboard sports event markets trend for the latest moves and fresh capital flows to prediction platforms.
While these products operate under different regulatory regimes than New York’s sportsbooks, their ascent pressures incumbents to refine pricing, in-play markets and product UX. If exchange-like features gain traction, hold could compress over time, increasing the premium on scale, risk management and parlay innovation to defend margins.
Taken together, New York’s early-year arc shows a market at peak scale, increasingly sensitive to hold and product mix, and shaped by policy choices that could determine how operators balance growth with profitability. February’s split-screen—rising handle, uneven revenue—wasn’t an aberration as much as a reminder: in the nation’s biggest betting market, timing, tax and technology can swing the scoreboard as much as the games themselves.
