New York online sports betting revenue plummets in May
Winnings for New York State’s online sports books plunged 18% in May, as hold slipped to 9.6%. Books won $204.2 million on handle of $2.1 billion, down 8% from 2025.
FanDuel led in handle and win. It realized revenue of $88.7 million off handle of $767.8 million, holding at an 11.6% clip, also a state-leading figure.
DraftKings was close behind at $706.5 million in handle, with win of $66.5 million. It held at 9.4%. BetMGM realized $13.4 million in win, holding at 8.1%. Its handle share was $166.2 million. Next was Caesars Sportsbook with $9.8 million in revenue. Holding at 6.9%, its handle share was $142.4 million.
Underperforming its precursor, ESPN Bet, theScore Bet made $3.2 million. It held at 7.6% off handle of $42.6 million. All other online books in the Empire State, including Fanatics Sportsbook, combined for $22.5 million in win. Their handle share was $307.2 million and their aggregate hold was 7.3%.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
May’s drop followed a volatile spring
New York’s May sports betting report landed against a backdrop of sharp month-to-month swings in the nation’s largest regulated online wagering market. The state’s online sports books won $204.2 million on $2.1 billion in handle, with revenue down 18% as hold slipped to 9.6%. That decline did not signal a collapse in demand so much as a reminder that sportsbook revenue can move quickly when margins narrow, especially in a market where billions of dollars are wagered each month and operator results depend heavily on sporting outcomes.
The May result also contrasted with the prior high-margin months that had helped define New York’s recent trajectory. In March, operators generated $217.3 million in revenue despite lower handle, helped by a 9.3% hold and strong results from the state’s two dominant brands. That month, New York online sports betting revenue rose 34.3%, underscoring how revenue growth can outpace wagering volume when operators retain a larger share of bets. May reversed that dynamic: handle remained substantial, but the lower hold compressed win across much of the field.
That pattern matters because New York’s model is built on scale and taxation. The state’s 51% tax rate on online sports betting revenue means a weaker hold can quickly reduce operator earnings and state receipts, even if customer activity remains resilient. Operators such as FanDuel and DraftKings have shown they can profit from scale, but the market leaves little room for smaller brands to make major gains unless they can either acquire customers efficiently or produce standout trading results.
FanDuel and DraftKings kept their distance
The competitive structure in May looked familiar. FanDuel led the market with $767.8 million in handle and $88.7 million in revenue, holding at 11.6%. DraftKings followed with $706.5 million in handle and $66.5 million in revenue, holding at 9.4%. Together, they accounted for most of the state’s online sportsbook win, maintaining the two-brand concentration that has characterized New York since launch.
That concentration was already visible late last year. In November, when the market produced $280.6 million in online sports betting revenue on $2.6 billion in handle, FanDuel dominated New York sports betting revenue with $131.9 million in win from $1 billion in wagers. DraftKings was second with $89.1 million on $916.3 million in handle. The November figures showed both the upside of the market during stronger sports calendars and the difficulty rivals face in closing the gap.
May again showed that even when headline revenue falls, the largest operators are positioned to absorb volatility better than peers. FanDuel’s double-digit hold softened the effect of lower marketwide revenue, while DraftKings remained close in handle. BetMGM, Caesars Sportsbook and others continued to operate at a smaller scale, making their results more vulnerable to promotional spending, weaker hold percentages and limited differentiation in a mature market.
Midtier brands faced a tougher comparison
The May data also highlighted the uneven performance of operators outside the top two. BetMGM won $13.4 million from $166.2 million in handle, holding at 8.1%. Caesars Sportsbook generated $9.8 million on $142.4 million in wagers, for a 6.9% hold. TheScore Bet, which replaced ESPN Bet in the market, produced $3.2 million on $42.6 million in handle, holding at 7.6%. All other operators, including Fanatics Sportsbook, combined for $22.5 million in revenue from $307.2 million in handle.
Those figures show the challenge of moving from brand awareness to durable share. Fanatics had shown momentum in earlier reports, including November, when it generated almost $23 million in revenue on $209.1 million in handle. ESPN Bet, meanwhile, recorded $56.5 million in handle and $3.9 million in revenue in its last month of operation in the state. The transition from ESPN Bet to theScore Bet signaled how operators continue to test brand strategy, platform integration and promotional economics in New York.
The March report offered a similar lesson. FanDuel and DraftKings together won $164.9 million, while BetMGM’s hold was just 6.1% and the smaller group of operators collectively held at the same 6.1% clip. In a high-tax state, those margins matter. A few points of hold can separate a strong month from a disappointing one, especially for books with less handle to offset unfavorable results.
Online casino growth framed the wider policy debate
New York’s sports betting figures are also being watched alongside online casino performance in neighboring and regional markets. New York does not yet have legal online casino gaming, but the revenue growth in nearby states has strengthened the argument that igaming could become the next major digital gambling opportunity for Albany. The contrast is notable: sports betting produces large handle and volatile revenue, while online casino tends to deliver steadier monthly receipts.
New Jersey remains the benchmark. In May, New Jersey online gaming revenue climbed 28.5% year over year to $246.8 million, with year-to-date revenue up 22.5% to $1.2 billion. The market’s leading online casino licensees, including Golden Nugget Atlantic City and Borgata Hotel Casino, posted sizable gains. New Jersey’s results show the compounding effect of a mature igaming market with multiple casino brands and established player databases.
Pennsylvania has delivered a similar message. Its May igaming revenue reached $232.9 million, up 33.8% from the prior year, with slots generating the bulk of the total. The growth was broad, led by Hollywood Casino at Penn National Race Course and supported by gains at several smaller licensees. The report that Pennsylvania igaming revenue rose 33.8% year over year reinforced the fiscal stakes for states still debating whether to expand beyond sports betting.
Delaware showed even small markets can scale
Delaware’s recent results added another data point for policymakers. The state has only three casino operators, but May igaming revenue more than doubled from a year earlier to $8.3 million. The gain came from both online table games and online video lottery products, with Delaware Park, Harrington Raceway and Casino and Bally’s Dover all reporting year-over-year growth. The report that Delaware online gaming revenue rose 115.8% year over year in May illustrated how product changes and platform performance can move revenue even in a small market.
Delaware’s importance is not its scale but its precedent. It was the first U.S. state to legalize online gaming in 2012, and its latest gains show that digital casino revenue can remain expandable years after launch. For New York, which already has the largest online sports betting market by many measures, the question is whether lawmakers will seek the more predictable revenue profile of igaming or continue relying on sports betting and downstate casino development as the main engines of gambling growth.
The May sports betting decline therefore carries broader significance. It does not suggest consumers are leaving New York’s online wagering market. Rather, it shows the limits of a revenue stream driven by hold, calendar strength and operator mix. FanDuel and DraftKings remain entrenched, smaller books are still fighting for sustainable share and the state’s fiscal exposure rises and falls with monthly sportsbook margins. As other states post steady online casino growth, New York’s sports betting volatility may become part of a larger debate over how far the state should go in digital gambling expansion.
