New York online sports betting plummets in June despite strong handle
New York sportsbooks took a double-digit hit in June, in spite of a steep increase in handle, numbers from the New York State Gaming Commission that were reported by Deutsche Bank on 10 July.
Revenues for June plunged 43.5% year over year, hitting US$116 million and holding just 5.2%. Handle was just shy of US$2.3 billion, an upshot of 36.6%.
Holding best at 7.4% was theScore Bet. However, it lagged the field with US$2.6 million in win on handle of US$35.2 million.
The weakest hold was Caesars Sportsbook’s 4%. It won US$5.9 million off wagers of US$146.1 million.
Narrowly leading the Empire State in win and handle was FanDuel. It recorded win of US$42.7 million from wagers on the order of US$804.1 million, FanDuel held at 5.3%.
Close behind was DraftKings, reporting winnings of US$41.6 million. That was derived from handle of US$785.4 million, also for 5.3% in hold.
BetMGM made US$10.8 million off US$161.8 million in bets taken. That translated to a hold of 6.7%. All other books, including Fanatics Sportsbook, combined for US$13.2 million in revenue, a hold of 4.1% on average. Their aggregate handle was US$320.9 million.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Handle growth stopped translating into revenue
New York’s June sports betting results sharpened a theme that had been building for months: rising wagering volume does not guarantee rising sportsbook revenue. The state’s online operators generated nearly $2.3 billion in handle in June, a year-over-year increase of 36.6%, but revenue fell 43.5% to $116 million as the market held just 5.2%. That gap between betting activity and operator win is the key context for the latest monthly report.
The result was not an isolated miss. In May, New York online sports betting revenue fell 18% even as handle remained above $2 billion. Sportsbooks won $204.2 million from $2.1 billion in wagers, with hold sliding to 9.6%. That was a much healthier margin than June, but still showed that operators were becoming more exposed to month-to-month volatility in outcomes, bettor mix and product performance.
The June report pushed that concern further. FanDuel and DraftKings again dominated handle and revenue, but each held only 5.3%, barely above the market average. Caesars Sportsbook held 4%, while the collective performance of smaller operators including Fanatics Sportsbook produced a 4.1% hold. TheScore Bet had the best percentage at 7.4%, but its $35.2 million in wagers gave it limited influence on the state’s total.
A market built on scale is showing margin risk
New York remains the largest U.S. online sports betting market by many measures, but its economics are increasingly defined by scale, tax exposure and small shifts in hold. A few percentage points of margin can mean tens of millions of dollars in operator revenue and, by extension, state tax receipts. That matters because New York’s model relies on high volume and a steep tax rate to fund public programs.
March showed the same dynamic in a different form. In March, New York sportsbooks recorded $2.4 billion in online handle, up from $1.9 billion in February, but gross gaming revenue fell month over month to $161.8 million from $184.8 million. DraftKings led handle that month with $912.1 million and generated $62.5 million in gross gaming revenue. The state’s nine licensed online sportsbooks sent $82.5 million to education, underscoring why lower hold rates are not just an operator issue.
The March figures also showed the maturity of the market. New York has nine licensed online sportsbooks: Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics Sportsbook, FanDuel, Resorts World Bet and Rush Street Interactive. The field is broad, but the economics are concentrated. FanDuel and DraftKings typically control most betting volume, while BetMGM and Caesars occupy the next tier. The remaining operators compete for share in a market where customer acquisition costs and product differentiation can be difficult to justify against entrenched leaders.
Earlier strength raised expectations
The latest decline looks starker because earlier monthly comparisons showed stronger revenue conversion. In a prior May period, New York online sports betting revenue outpaced handle growth, with revenue rising 22.4% to $249 million while handle increased 12.1% to $2.2 billion. The difference was hold: sportsbooks kept 11.3% of wagers, compared with 10.3% a year earlier.
That month illustrated how the same market can produce very different financial outcomes depending on product mix and event results. FanDuel, with its parlay-heavy customer base, held 13.6%, while DraftKings held 10.7%. BetMGM and Caesars each held 9.1%, and ESPN Bet held 8.3%. Those margins produced a revenue mix more favorable to the leading operators and to the state.
By June, that advantage had largely disappeared. A 5.2% market hold left operators with a revenue base far below what the same handle would have generated in a stronger-margin month. The comparison shows why investors track hold almost as closely as handle. Handle signals consumer activity, brand reach and market penetration. Hold determines how much of that activity becomes revenue.
FanDuel and DraftKings remain central to the state’s trajectory
The latest numbers again show New York’s dependence on its two largest operators. FanDuel narrowly led June revenue and handle, with $42.7 million in win from $804.1 million in wagers. DraftKings followed with $41.6 million in revenue from $785.4 million in handle. Together, they accounted for most of the state’s online sports betting activity, and their near-identical 5.3% hold shaped the marketwide result.
That concentration has broader corporate significance. FanDuel parent Flutter Entertainment has been the focus of bullish investor commentary despite concerns about slowing U.S. sports betting handle growth. In a July 7 investor note, Jefferies analyst James Wheatcroft called Flutter a strong “buy,” citing a multiyear U.S. growth opportunity and expectations for stronger cash flow even without faster handle growth or new state launches. The note, covered in Jefferies’ bullish view on Flutter, also acknowledged that U.S. handle growth had slowed as promotional spending became more rational and fewer new states launched wagering.
That analysis helps frame New York’s June data. Operators are trying to grow more profitably, not simply chase betting volume. Reduced promotional intensity can weigh on handle growth because free bets are counted in handle, but it can improve long-term economics. At the same time, higher-margin products such as parlays may support revenue even when wager amounts are lower. June’s weak hold shows the other side of that strategy: when results break against sportsbooks or high-margin products underperform, large handle offers limited protection.
Public revenue stakes extend beyond operators
New York’s sports betting market is closely watched because the state channels net revenue into public purposes, including education, youth sports and problem gambling programs. When operator revenue falls, the public finance impact follows. March’s $82.5 million education contribution showed the upside of a large market even in a month when revenue declined from February. June’s lower revenue base implies a smaller contribution from a similar level of consumer activity.
The stakes also reach the competitive structure of the market. Smaller books face a difficult equation when hold is weak and the biggest brands command most of the volume. In June, BetMGM generated $10.8 million from $161.8 million in wagers, while Caesars won $5.9 million from $146.1 million. All other operators combined for $13.2 million in revenue from $320.9 million in handle. That leaves limited room for sustained marketing, technology investment or aggressive promotional campaigns unless operators believe they can gain share over time.
The broader industry remains financially significant. The iGaming sector’s representation on Forbes’ Global 2000 list, detailed in a report on strong iGaming growth among the world’s largest public companies, included Flutter, MGM Resorts, Caesars Entertainment and others with major U.S. digital betting exposure. Those companies are under pressure to show that online wagering can move from expansion mode to durable earnings growth.
Volatility is now part of the New York story
The June results do not suggest that New York bettors are losing interest. Handle remained enormous and grew sharply from a year earlier. The issue is that the state’s mature online sports betting market is increasingly judged by revenue quality, not just volume. A $2 billion handle month can look strong on the surface and still disappoint if hold weakens.
That makes future monthly reports more consequential. Operators will be assessed on whether they can balance market share, promotional discipline and product mix while managing the inherent volatility of sports outcomes. Regulators and budget officials will watch the same numbers for their effect on public revenue. Investors will look for evidence that FanDuel, DraftKings and their competitors can turn dominant consumer engagement into more predictable earnings.
New York’s latest decline is therefore less a contradiction than a warning. The market is still large, active and strategically important. But as June showed, scale alone does not insulate sportsbooks from margin pressure, and in the nation’s most visible online betting market, a weak hold can quickly turn booming handle into a revenue slump.
